Good time to remind folks using Bitkey (or know folks using it) of the utxo consolidation feature
Discussion
Just did mine and we oddly posted about it minutes apart lol
Would be awesome if they also added coin selection for sends
Very happy you guys have this. Would we be able to have different wallets on the same bitkey?
Thanks for the reminder! Super easy to use feature!
What does that do?
What does that do?
Well that’s real handy. How many sats per post-consolidation-UTXO does it aim for/what ?
what does this function do ?
It takes all your small balances and merges them into one large balance.
Think of it like taking a bunch of loose change to the bank to exchange it for a large denomination note.
You want to do this because fees are based on each balance (UTXO - Unspent Transaction Output) so if you send 100K Sats and you have 10 10K Sat UTXO's then you will be charged 10 X on the fees compared with a single UTXO of 100K sats.
You also don't want to consolidate too much because if you want to spend say100K Sats and you only have a 10 BTC UTXO, everybody will see you have 10 BTC as soon as you spend 100K Sats.
i.e. you will send 10 BTC, the recipient will receive their100K Sats, the miner will take say1K Sats in fees and you will receive a single UTXO of 9.99xx BTC in change.
Probably the best explanation I’ve seen 👍🏼
This is not the way unless you want to give up all your privacy. Instead use Bull Bitcoin and #payjoin it.
Bitcoin's mempool isn't very full at the moment and fees are very low. Now is a great time to consolidate your smaller utxo's and open new lightning channels 🤙🏻🫂💜
I'm really going to have to get one of these some day to play with.
such a great early feature release. easy peasy.
Needs a “Mix Coins” setting. #coinjoin
give us UTXO management instead of just consolidate all.
some of my UTXOs are KYC and others are peer to peer. until KYC goes I want to manage my UTXOs in a more hands on fashion
If I’m not mistaken, you could swap your KYC Sats for Liquid Sats and back to onchain, for better privacy.
I've done this in the past, but honestly I just don't want others to see my larger addresses. its the peer to peer stuff I want obfuscated from the KYC stuff. I also don't want people to have to send to a liquid address before it goes to my wallet. That's too cumbersome from a transaction standpoint on my end
On Nunchuck wallet, you have the option to tag your UTXO and it’s very convenient.
Yes
I am not sure I could ever use Bitkey, considering the key generation methods are completely secret and there is no mechanism for us to choose our own keys (derived from another trusted source).
Disclaimer: I own a stack of these that I purchased at full price to test them out.
The worst part is they claim to be open source and pointed me over to their github which doesn't actually have any information or details on the source of entropy as it is (apparently) based entirely on another organization's hardware. Extremely concerning, considering other wallets both (A) fully opensourced their entropy sources and (B) allow you to choose your own keys:
Don't get me wrong though - outside of this issue, the Bitkey would likely be my most used hardware wallet.
I haven't put any measurable bitcoin onto any of them, waiting to see why everything else about it is so perfect but this one thing ☹️