0 sats \ 1 reply \ @lada 15 Jun 2022 \ on: Noob question: Is it a good idea to consolidate a bunch of UTXO's, or not? bitcoin
Other than privacy concerns, there is another risk of holding everything in one UTXO. The risk is infinitesimal, but hear me out.
There is always a (infinitely small) chance that someone will generate a key that collides with yours. If this collision occurs with your one and only UTXO, you lose everything.
Therefore, spread it out over many UTXOs. On the teeny weeny chance you get unlucky and the universe aligned to grant someone a key collision with you, you only lose some of your sats, not all of them.
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21 sats \ 0 replies \ @anon 8 Jan
No, the collision problem is nonexistent. If consolidation of UTXO’s is the goal, there are arguments against it like having all of your eggs in one basket and losing the wallet/keys/seed words, but the collision argument isn’t even worth mentioning. People hack exchanges, but nobody hacks Bitcoin.
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