Treat utxos like bills in your wallet. You wouldn’t want to only have $10,000 notes. You want some $10 notes to buy a coffee with and not get $9990 change.
I think aiming for 1M utxos for the better part of your utxos is a good practice. Maybe also some bigger ones if you want / can afford. But maybe also some smaller ones in case 1M would be overkill
I am not sure havin small UTXOS will ever be useful.. for what I learned it those years and most in last year of high fees transactions.. you most likely should avoid at all to have even a small amount ot utxos under 1M.. there's no cons in having only bigger ones.
The example with notes doesn't match cause you will not have a single note back of 9990$ but you will always have back just one UTXO after every transaction. Better always to consolidate smaller one in period with low fees, and batch them all together in a single one, that will have less data input for a further transaction.
Please if I am wrong and you think I am missing something explain it to me 😉
There is a privacy issue with only having large utxos.
True, that's a valid point. But would be small utxos most likely unusable in 2/3 cycles (maybe even before)?
For the privacy issue and small future payments I am trying to organise myself with custodial and not custodial solution.
To spend bills in my wallet I don’t need to pay tx fees.
It’s my opinion too that UTXOs of the size of 1.000.000 sats will be sufficiently big to be economically spendable
