One last thing. If not urgent, perform mixing and consolidation during low fee environment.

🤜🤛

With that being said, as long as you can prove that you purchased an equal or greater amount of Bitcoin than you intend to sell, I don't foresee any issues. You'll be able to establish the origin of funds even after undergoing the mixing process.

There's no need to consolidate them into a single UTXO before using a mixer. For future privacy, opting for three or more mixes is recommended. Afterward, designate these UTXOs as "mixed" and label upcoming ones as "kyc" or "non-kyc" for straightforward privacy management in any transaction.

However, it's essential to note that regulators frown upon mixers. In the US, certain centralized exchanges flag UTXOs from mixers, and Chainanalysis scrutinizes your last three hops for this. This can be circumvented by conducting three transactions before sending to such exchanges. In the EU, a new law by the end of the year may label self-custody and mixers as "risky," requiring proof of fund origin. Regularly exporting your buy history from an exchange is crucial.

Nevertheless, these considerations become irrelevant if your intention is not to sell on a centralized exchange. Peer-to-peer selling remains a viable option.

But why would you sell hardest asset known to mankind for toilet paper anyway? 😊

Welcome 🫂🧡

Thank you for your generosity 🫂

Combining KYC with non-KYC transactions exposes the connection between them, rendering your non-KYC UTXO traceable back to you. Essentially, it diminishes the anonymity of your non-KYC holdings, making them redundant, as it becomes evident you could have just acquired KYC-verified assets. Despite this, engaging in three or more mixing processes through CoinJoin helps restore privacy for subsequent transactions. However, it's crucial to note that the consolidation of KYC and non-KYC UTXOs during this process discloses your increased Bitcoin ownership to those aware of your KYC UTXOs, and this revelation is irreversible.

Welcome 🫂🧡

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.

nostr:note1cf84lhhhnmek4qdws0qx5xceh29casmy40xcra2cl0hnhtx58skssjtynx

Depending on your stack. If you have 1 Bitcoin then yes. If you have 10+ then it is a reasonable size.

Possible splits:

1 Bitcoin:

1x 0.25

5x 0.1

5x 0.05

10 Bitcoin:

10x 0.5

10x 0.25

30x 0.05

These are just examples. It’s up to you how you want to split it.

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.

0.5 and some 0.05, depending on your stack

I don’t think it is good practice to get an UTXO as fat as possible.

This calculator might help:

https://jlopp.github.io/unspendable-utxo-calculator/

My opinion:

- Consolidation of UTXO < 1 million sats is a must

- Even 1 mio sats might be too low for long term (I prefer > 5 mio)

- Never consolidate kyc with non-kyc UTXO

- if possible consolidate UTXO from same source

- Having multiple different UTXO sizes depending on your stack is a good solution

- Coinjoin gives you privacy for future transactions but doesn’t affect past transactions

For example UTXO split for 1 Bitcoin:

1x 0.25

5x 0.1

5x 0.05

For 0.05 not being economically spendable, it takes an insane fee increase. On native segwit it would cost you ~80 k sats at 1000 sat/vB

Two reasons for UTXO management:

- Fees

- Privacy

Regrettably, prioritizing maximum privacy conflicts with the objective of low fees, and vice versa. It's a matter of striking the right balance.

I suggest to check out nostr:npub1rxysxnjkhrmqd3ey73dp9n5y5yvyzcs64acc9g0k2epcpwwyya4spvhnp8 guides on this.

https://youtu.be/Mqe0QCxjKpI?si=ccYxRV0_gKXbJdb3

https://youtu.be/6TcUY2yU41w?si=W3weca50337_ddrl

🤙🫂☕️

💯☕️🤙🫂

GM ☕️🧡

Absolutely, it's a compelling scaling puzzle. Excited to see where this is going.

By the way, your art is amazing 🤩

And gridless compute doing amazing stuff

nostr:note1tvagvzjjvemfdpe636fhaj3nldp22xdug7y3e4lvarqajve2dlcs5ek0ga