@teemupleb explained the concept of UTXO (Unspent Transaction Outputs) in Bitcoin networks. Imagine UTXOs in your Bitcoin wallet like coins and banknotes in a piggy bank, each with a different value. When you want to buy something, you pick out whatever you need from your piggy bank. Sometimes, you'll have to use a lot of small coins (UTXOs) to pay for something big, which can cost extra in Bitcoin transaction fees, just like if you were using coins to pay for something in a shop, it would take longer and might be a bit annoying for the cashier.

When lots of Bitcoin users are sending payments at the same time, the system gets busy, and it can take longer for your transaction to go through, or cost more. To avoid high fees, you can swap your smaller UTXOs for one big UTXO when fees are low, like trading in lots of coins for a larger banknote. This is called UTXO consolidation, which is like exchanging small coins for a larger bill, and it can save you money in the long run.

One thing to remember is that every time you exchange small UTXOs for a larger one, people can see those UTXOs moving around, just like if you were changing coins for banknotes at a bank. While they won't know for sure that it's you making the exchanges, they might be able to make a guess.

Finally, if you have a lot of small UTXOs, it might cost more to spend than it's worth - like having a handful of coins that cost more to carry around than just spending them. For Bitcoiners who often collect small amounts of Bitcoin, UTXO consolidation can help their Bitcoin to be usable when the network is busy.

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