Summary
The article discusses the problem of high transaction fees in Bitcoin and how it can turn small UTXOs (Unspent Transaction Outputs) into dust, making them unspendable. The author explores the fluctuations in transaction fees over the past 6 months and how it affects users with small UTXOs. They provide a formula to determine if a UTXO is dust and present a dust table based on a realistic scenario. The article emphasizes the importance of having large UTXOs and recommends not keeping UTXOs smaller than 0.01 BTC for long-term storage. The author also discusses the cost of signing a single standard UTXO and provides key takeaways for users to mitigate the risk of their UTXOs turning into dust.
Key Points
1. Bitcoin transaction fees have been rising significantly in recent months, causing some users to experience challenges, especially those with small UTXOs.
2. Small UTXOs can turn into dust when transaction fees become too high, rendering them unspendable.
3. It is important to consider the size of UTXOs and avoid keeping UTXOs smaller than 0.01 BTC for long-term storage to mitigate the risk of them becoming dust in high fee environments.