LynAlden on Nostr: Ultimately it comes down to how many UTXOs want to move in a given time period ...

Ultimately it comes down to how many UTXOs want to move in a given time period relative to how much blockspace there is.

There are a lot of tiny UTXOs relative to block space available for a year, so moving them can be cost prohibitive.

And in a future world where sats are way more valuable than today, it likely means that a lot more people own sats and are trying to use blockspace, which drives the transaction fees up. So those tiny UTXOs might be worth more but still remain cost prohibitive to move in many cases since fees are also higher.

It’s good to consolidate UTXOs when it is cheap to do so, albeit taking into account some privacy considerations and so forth.