what happens to a utxo in the future when #bitcoin tx fees exceed the value to the utxo?
we say those are useless, and to save your utxos so you don't have a problem in the future with #utxo #management. but that situation creates a very possible use case:
what if a nation state takes a large sum of bitcoin and divides it up into utxos that can't be transferred on-chain (utxos the size of 100, 500, 1000, 2000) then prints each utxo private key on a promissory note so they can be transferred physically off-chain?
each note could be verified at the time of tranfer and transferring the value on-chain would result in the destruction of that utxo.
the nation state would essentially back their entire currency system with an amount of btc that determines the exchange rate, and they would only need to peg their physical cash, not their entire currency market cap.
it would essentially eliminate counterfeit cash and preserve all on-chain tx fees, while backing their monetary system with a hard, finite asset.
would love to get some feedback on this idea