Replying to Avatar Dash

Great read from nostr:npub1h8nk2346qezka5cpm8jjh3yl5j88pf4ly2ptu7s6uu55wcfqy0wq36rpev on the importance of UTXO consolidation. I had naively believed that if one controlled several smaller UTXO these could be efficiently consolidated at any time but in fact each UTXO is encumbered by its own private key which means that a signature is needed for all inputs in a transaction and there is little efficiency gained by consolidating during a spend. Therefore UTXO consolidation needs to be pro actively done during opportune low fee periods. Considering 100,000sat UTXOs can become unspendable this is a serious issue for many DCA stackers.

Bitcoin Audible: Read_801 - To Dust You Shall Return

Episode webpage: https://podcasters.spotify.com/pod/show/bitcoinaudible/episodes/Read_801---To-Dust-You-Shall-Return-e2fs4gm

Media file: https://anchor.fm/s/80d5cfc/podcast/play/82759638/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2024-1-16%2F31bbef98-53cf-05c4-1567-042064420d47.mp3

Before I dive into it. Is he saying what optimal, minimal UTXO would be? I heard many say 1 million sats.

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