Replying to Avatar Bfgreen

I do almost exactly the same. LN wallet > on-chain hot wallet > BTC cold storage all at predetermined amounts. It keeps things moving along and my stack growing. What I haven't paid as much attention to (yet) is consolidating my UTXOs. As I'm not really spending my BTC it's not a challenge, but there's some logic in consolidation UTXOs now while it's cheap to do so. Thoughts?
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SLCW 1y ago

You should also consider the effect consolidation will have on your privacy because once you consolidate, all your various coins and transactions will be associated with the one address you consolidate to.

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Bfgreen 1y ago

True. It could also possible mesh together my non-KYC with a small amount of KYC. Ugh - wish I was 100% non-KYC dang it.

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SLCW 1y ago

It's not just the KYC issue. Anyone can look at the blockchain, and see which addresses are engaged in which transactions. Mapping out these records can reveal a lot of about the people behind them. Consolidation makes this arduous process exponentially easier. The principal of security through obscurity, which is often the only thing protecting the identity and behavior of bitcoin users is essentially obliterated as a result of consolidation.