Privacy.
Consolidating your children's UTXO into a single one will result in the disclosure of their entire stack to the recipients.This approach makes them vulnerable targets for potential attackers.
Discussion
Ah. Understood. What do you recommend as far as smallest UTXOs and how many you should have? Like I completely understand why you wouldn’t set your UTXO minimum at like 1m sats and just have tons of 1m sat UTXOs. Where do you draw the line of consolidating new UTXOs into those others?
In the end it’s subjective and depends on your stack how you split your UTXOs. Some chunks of 5-50 mio sats UTXOs seems a good long term solution for me. Obviously if you have <1 BTC then 50 mio is too big. Then you aim for the lower end of the above recommendation.
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