This isn't the type of question that will have a definitive answer and the future of bitcoin value relative to goods has an impact on the answer. Other things to consider are transaction fees and privacy.
My thought is that it makes sense to have different size UTXOs of course. You don't want one big one or many tiny ones. But what do you think is the smallest you should have?
My current thinking is around 100k sats. If you have smaller UTXOs now is a good time to move them on to lightning via a swap service. Am I wrong? What do you think?
Bitcoin Audible has a recent episode something like "to dust you shall return" where he talks about this. IIRC he said 100k or so is pretty good. I've heard others who consolidate to 500k or so.
Here is the source article
This is the way!
Thanks, I need to check that out. This type of stuff is interesting to me.
Jameson Lopp had an intresting post in this context about Economically Unspendable Bitcoin UTXOs Also great comments in UTXO set & consolidation
If you ever use Bitcoin as a currency you'll have change/dust and UTXOs way smaller than that.
The assumption is no transactions will use L1 as "currency" -- it will be Lightning. So you might have a 1M channel transaction on chain with no change.
In the future yes. In the last decade and currently now there are many businesses that only accept Bitcoin on the chain.
If you are spending on-chain, then you want to keep your UTXOs small for privacy and safety.
Its hard to know. People freaking out about fees (I'm one of them!) can't really say that we're going to have a dead mempool again.
100k sats for this epoch sounds about right, but long term I think 1 million sats should be good standard to go by.
Lightning and other L2's are not ready for mass adoption yet. A lot of OG bitcoiners only transact on chain so it will take time for them to move up a layer or 2.
Then there's the whole issue of consolidating UTXO's and sacrificing privacy which is not ideal either.
This is exactly the thought process I have been going through.
At the moment when buying something on chain and the change is small, I line it up with a LN swap or liquid peg in. That way I'm avoiding future onchain dust.
Typically in investing you like to keep your annual fees under 1%.
Picking 5 year average hold time means you'd be willing to pay 0.2% fees on an utxo.
The current feerate is 43 sat/vB which works out to 10k sats or a minimum utxo size of 5 million sats => 0.05 btc.
Here it pays to watch the fee market and consolidate utxos when this 0.2% threshold is hit.
1M sats…and even then, I think that is kinda small. 10M or 1 BTC is probably safer
1,000,000 sats is my jam too. In a high fee environment that'd be reasonable to send from cold storage to a LNwallet.
Excellent video
There is no perfect answer for UTXO
Thanks trying to consolidate 50 UTXO’s now with Multi-signature
I try to do 200k and up
Any reason why you pick that amount?
No real reason in particular. I recently consolidated a ton of UTXOS and spent over 300k sats in doing it. I figured at 200k the amount of inputs shouldn’t be too large that would price me out of sending a transaction but if fees stay high for a long time then this could be very wrong
I try to stick to 1M, but usually end up with quite a few 100ks.
PLEASE EXPAND!
1 - 2 million sats feels reasonable.
500 bucks maybe 1000 according to Andreas Antonop
Whatever that translates to Satoshi
based on straight nut n' gut...a million sats
Thanks for sharing. I’m actually planning to go the opposite route as I have 50 UTXO’s and looking to consolidate all to one as I’m a DCA value HODLer mostly. I’ll add more smaller in the future, but don’t want them trapped in my multi sig with fees.