Timeline for Confused about UTXO management and consolidation
Current License: CC BY-SA 4.0
4 events
| when toggle format | what | by | license | comment | |
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| Mar 2, 2021 at 22:08 | comment | added | Sachin Meier | 2) Yes, it's a problem that sitting on lots of small UTXOs may, in the long term, cost you lots of fees. But I'm not sure why someone would ever consolidate all their UTXOs at once. | |
| Mar 2, 2021 at 22:03 | comment | added | Sachin Meier | I'm no expert in this matter, but I'll try to answer. 1) Consolidating all your bitcoin into one UTXO means, if an observer knew one of your UTXOs, they now know all your UTXOs, and can trace your other UTXO histories. | |
| Mar 2, 2021 at 19:38 | comment | added | Solal | But so it means no matter what, if you are a long term holder/has been in Bitcoin for a while and you don't transact a lot (i.e you've been stacking sats regularly), at some point in time if you wish to transfert your entire balance for whatever reason you're going to find yourself with a huge transaction fee (unless you did consolidate within one UTXO when the mempool was empty but you gave up on privacy). Also, can you expand on how having only one UTXO is not good for security? | |
| Mar 2, 2021 at 18:46 | history | answered | Sachin Meier | CC BY-SA 4.0 |