What do you think guys about Consolidation multiple UTXO to one to be able to spend it at future in case the fees get high??
Batch open lightning channels with nolooking with other people not just with yourself, then LN to on-chain swap with fixed float or something
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Here‘s a Twitter Spaces discussion about this topic.
I don’t think this is a bad idea. May be a good idea to have UTXOs of different sizes.
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Why do you need to have UTXOs for different sizes??
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Dumb idea , in one swoop you will lose all your bitcoin, unless you got multisig. Multisig a little bit safer but more complicated. Better to have lots of separate small private keys/utxo with passphrases on top and like a squirrel hide those everywhere
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Another reason to keep it small, there will be less incentives to crack seed(nut) by bad actors, they will go for big nuts(utxo) first
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You're right but don't forget that the fees will go higher unless bitcoin will be the reserve currency and use just for the final settlement between the bank and for small txn will be on LN
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Can you guys elaborate your thoughts? I‘m not sure if I understand your concerns correctly.
I mean, one wallet and private key can control multiple UTXOs. And if I have access to a private key, I can sweep the whole wallet and all of its UTXOs. It may be more expensive if I have to transfer sats from multiple UTXOs to another address, but still possible.
I don’t think OP meant to have only 1 UTXO at all times. It’s difficult anyway because everything you receive/send sats, your wallet creates a new UTXO.
Multi-sig is a more secure way to store your Bitcoin, yes. But I don’t see how the different sizes of UTXOs may or may not increase the security.
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1 seed - 1 UTXO The smaller the better . Whale, crab, prawns and you - microbe No one gives shit about microbes,you are safe now my friend
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That means, for every payment you receive, you‘ll create a new wallet?
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At current price 25k and current transaction fees - 1 UTXO-0.1 bitcoin max Consolidate up to 0.1 bitcoin If Price of bitcoin doubles then 0.05 bitcoin - 1 UtXO That’s way you always remain 🦠 microbe
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Ok, I see. But that‘s then for long time storage.
And probably another hot wallet to receive payments and accumulate until you have the desired amount.
Then, create new wallet, and transfer the stack to the new wallet.
That would be the basic routine in your case?
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If you talking about lightning and satoshis then I don’t know what is best routine. I just buy KYC here and there and don’t spend it. Until bitcoin is accepted everywhere and is tax free there’s no reason to to touch it at all. Every time you do something is a taxable event and needs to be reported , too much hassle to even bother
I thought about doing this but haven't gotten around to it. I don't see a downside. It'd be nice if a wallet had a feature where it would monitor your UTXOs and the fees on-chain and alert you when it would be a good time to consolidate.
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Would be a nice service! 🤔 Could also be an external service since it would have to be online and check fees every so often. However, then you‘d need to share your wallet‘s information with another service. Not sure where the best trade-offs are.
I plan to consolidate/manage my UTXOs once fees come down.
The Sparrow Wallet gives the best UX so far on desktop devices.
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You don't need to share your wallet info with another service. Fees will definitely goes high and moon once the adoption grow. Consolidate UTXO we all need to do
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Yeah I thought would be 2 fold.
  1. Create a self-hosted app that allows you to plug in your xpub or address, email address, and values like tx fee. Then you could self-host and not give info to others.
  2. Create a company around it for managed-hosting, downside is you'd have to give your info to the company.
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