This is a part of the rabbit whole I've yet to explore..but what you're saying is giving me a sense of urgency.

What does it mean to have your utxos in order?

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Discussion

If you have a bunch of small utxo’s and are hodling for the long run, the idea is that “the long run” will involve greater Bitcoin adoption and thus a more crowded mempool, aka higher miner fees to make on-chain transactions.

As you probably know, the more inputs you have, the more data is in your transaction bc you need multiple signatures to send. So even though the mempool has felt pretty fucked ever since these shitcoins and “nfts” on Bitcoin started, they’ve come down to somewhat reasonable and it is a good time to consolidate small utxo’s into fewer, larger ones. When i do this i usually take ones rhat are <500k and create new ones 1M+

Some people believe that small utxo’s will be stuck in the future since fees required to spend them could be greater than the utxos themselves. I’m not super convinced that’s a very imminent threat unless you have a whole wallet (private/public key pair) with only one small utxo in it, personally.