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‘About 99.5% of all the Bitcoin in circulation is held in 16.5 million UTXOs that have a value of 1m sats or more. Most of the other 169 million UTXOs will likely become economically unspendable in the future assuming they aren’t consolidated into larger ones relatively soon.’ - nostr:npub14uhkst639zvc2trx2nlsvk4yqkjp690zk89keytnzgmq2az0qmnq58ez89

People please do some UTXO management and whilst doing that buy some sats.

Bitcoin’s Unspent Transaction Outputs (UTXOs) can be classified into different segments based on their age.

UTXO Management for Dummies:

If everyone pays you in quarters you’ll have to lug around a big heavy bag. It’ll also cost you more time to spend as you have to count quarters when paying. So ask for $20s or $100s as payment, or change your quarters into bills from time to time.

Now I can hear you say...wtf is a UTXO?

A UTXO stands for unspent transaction output. Don’t worry about those unnecessarily complicated words. Just use “UTXO” and understand the concept of what it is…

If you want to learn/study the topic: https://armantheparman.com/utxo/

Credit picture: nostr:npub14uhkst639zvc2trx2nlsvk4yqkjp690zk89keytnzgmq2az0qmnq58ez89

Study, learn, hodl, decouple.

#bitcoin 🧡

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My savings account: Bitcoin

The tool I recommend for setting up a Bitcoin savings plan: @Relai 🇨🇭 🇨🇭 especially suited for beginners or people who want to invest in Bitcoin with an automated investment plan once a week or monthly. Hence a DCA, Dollar cost Average Strategy. Check out my tutorial post (Instagram) & video (YouTube) for more info.

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Felipe - BitcoinFriday

#zap 🧡 #nostr #BTC #Bitcoin #plebchain #grownostr #stacksats #bitcoineducation #adoption

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Discussion

Best of BTC 1y ago

There is something about this problem/phenomenon that reminds inflation. It‘s like the money of the rich gains value and the money of the poor (in btc terms) looses value…

What do you think? Would it be reasonable for plebs who just have small btc-ammounts (like children and ppl from poor countries) to transfer their funds completely over to lightning? And if so, which is the most secure solution without running your own node?

#asknostr #btc #lightning #utxo

DETERMINISTIC OPTIMISM 🌞 1y ago

We don't know yet how to best handle this, but solutions will come.

techjunkie 1y ago

Just use Liquid BTC with nostr:npub1ajlrwgfj4yerhqf7ady03h7wmtk2qr3gs7h3sxcx83k05yld36sswpzx3q

Felipe 1y ago

Just my opinion:

For long term savings you wanna have larger UTXOs. So try to bundle the small amounts (UTXO's).

You can use lightning but I would use it whilst running your own node.

Bitcoin Mises 1y ago

I am releasing a tool soon that can help people detect when their utxos will be in danger of being spendable.

https://github.com/Jwyman328/LiveWallet?tab=readme-ov-file#live-wallet

https://m.primal.net/JCak.mov

amol 1y ago

I have question regarding this statement 'Most of the other 169 million UTXOs will likely become economically unspendable in the future assuming they aren’t consolidated into larger ones relatively soon.’

If bitcoin becomes more valuable in future like 1 USD per sat the miners will be incentivized to accept transaction charging 1 sat per v/B. Will a 10000 sat UTXO be economically unspendable in such scenarios?

Also is it possible to submit transaction to the network with 1 sat per 10 v/B or 1 sat per 100 v/B in case where value of 1 sat is 100 USD in future ?

Ben Eng 1y ago

I'm guessing, as fees rise due to increased demand for settling on chain and due to the reward disappearing for miners, the fee for spending might exceed the value of the UTXO.

Zhivago BTC 1y ago

I guess the price of each transaction would be regulated by a supply / demand scheme, so theoretically a tx could be accepted by miners at 1 sat per 10XX v/B, whatever the figure is profitable for the miner, isn’t it?

This is a question, not a statement.

Bogi 1y ago

Wouldn’t miners be incentived to eventually mine those small utxo’s for zero fees to help the Bitcoin network? i.e. get those sats back into circulation and get the utxo set smaller.

Felipe 1y ago

I doubt that since mining is such a competitive industry. I wouldn't count on it.

crany 👽🧡🗿 1y ago

note there are important privacy considerations and techniques to coin consolidation

Deleted Account 1y ago

Very interesting ! I'm gonna have to track too that on Satonomics.

If my data's right, there are currently 134.278M utxos between 1 sat to 0.1 BTC

https://app.satonomics.xyz/date-to-plankton-unspent-transaction-outputs-count

grottenolm 1y ago

So what, in your opinion is a sensible minimum size for a utxo? #asknostr

Cerebrum 1y ago

1 to 2 mln sats

Felipe 1y ago

Try not to have too many below 1m sats.