11 sats \ 2 replies \ @Rock 30 Nov 2022 \ on: Will small UTXOs become a problem in a mempool-collapsed future? bitcoin
I think you make a good point. I think this would lead me to believe the best strategy is a combination of regular consolidation of UTXO's before the fees become unmanageable as well as maintaining more of your smaller balances on layer 2, like lightning channels.
I do think that the cost of maintaining lots of small UTXO's will continue to increase, so better to learn about UTXO management sooner than later.
the trade - off small vs big UTXO's might no be so simple with a focus on coin control and privacy.
A little consolidation of 0.001 UTXO's:
In an hyperbitcoinization scenario 0.005 BTC might be worth in FIAT ~ 5000$ so for every spend ( on average between 70 - 200 $) we'll get back big changes. Right now we can 1)mix those changes, 2)swap them or 3)keep reusing them linking tx by tx.
leaving aside 3); either mixing them again or swapping will involve higher fees, IMHO rather than having 0.001 BTC ready to be spent in a higher fees scenario.
ATM the best option might be a wide range of UTXO's with a thought at the supposed hyperbitconization price of BTC - FIAT denominated
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IMHO the minimal fees will be 1sat per transaction, i.e. the small TXs will need to "overpay" to get to 1 final fee when the
-minrelaytxfee is the minimum — 0.00000001.But everyone will know that a TX with minimal fee will not live in the mempool for long and will never get mined. That's a real market. When the mempool is full all the time and minimal fees are minimal (not like the current default of
1000 sat perkvB).But that's just my opinion after thinking about it and running nodes and explorers for years.
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