Oddbean new post about login | logout Transactions fees are high. Did you manage your UTXOs appropriately while fees were low? Learn how to avoid getting burned by future high fees: https://blog.lopp.net/economically-unspendable-bitcoin-utxos/
As a general principle then is it okay to daily stack in a custodial setting like Strike and then send to self custody after a certain threshold?
Yes, in general I wouldn't withdraw to self custody more frequently than monthly.
Maybe people working low pay jobs putting $25-50 per month (if that) into bitcoin may not even need to think about sending bitcoin to a L1 wallet, at least for a while? Although, what might be considered a small utxo in usd terms might be larger in future terms. Right now 100k sats is worth between $42-44 where in the future could be worth $1k. But even then at $1M per BTC, that's still not a lot of money, especially in the future as the dollar is worth less. At a bare minimum what amount of sats is a safe amount to start moving into a L1 wallet in a single utxo? And for those doing utxo management to fix bad utxos (other than waiting for low fees) would it be better to think in terms of percentages relative to an individual's stack? E.g. if you had 20M sats split utxos into 4 equal amounts of 5M per utxo? And for the other end of the spectrum is there a utxo too big?
Coinjoining during low fee environments kind of takes care of this as a benefit additional to privacy. You tend to end up with larger-size post-mix UTXOs with the change being the (presumably small % of your stash) area to worry about future spendability.
My tax software would read my transaction history and see a capital gain when entering the coinjoin and then as income when exiting the coinjoin (assuming the value is directed back at me)
Sounds like tax software to not use, or to edit the report it generates.
This is also how an IRS agent will make a determination on the taxes you owe unless you trace the coinjoin for them (if you get audited).
What is the point of coinjoining if you’re going to just link your input and output transactions for the government?
Well, coinjoins don't look like normal transactions, they look like coinjoins. I guess it depends on if you think you can lie to their face and get away with it. A field audit usually goes on for 2-3 years, and they don't really let up. If they think you are lying then it becomes a crimal investigation instead of a financial investigation. Just being honest with them is emotionally exhausting because of how intrusive they are. I'm guessing you've never had IRS agents audit you for all your crypto transactions before.
Nope, but it’s probably something that will increase in frequency. Moving business out of the US may be the only option for avoiding it if you want to maintain any privacy.
This is an important heads up ⬆️
Lol - be careful with your arrows 😆 https://i.nostr.build/nayq.jpg#m=image%2Fjpeg&dim=1024x776&blurhash=%2365%7Dmp%7EW-%3B%25MWARjIoIUIV%25LtRt7a%7BWBWBWBazV%40E1IoNGRjbHofofs%3As%3A-%3B-%3A%252xuoeWBRkM%7BNGIUt7xuayofWBaybHWB4n9FD*M%7BWBofxuxu%25Lj%5DRQM%7BWCWBkCoyoftQ&x=fea2492ac1843b321960f4ee644342fd32586dbfcf29c43e5ce6e77f35b61993
But do you think keeping all the money in one UTXO is a security risk? I have the irrational fear that people will brute force over private keys (not the 24words seeds) and might catch something so it feels like a better idea to keep them separate. 🤷🏻
I seen a lot of people say it's as easy as sending all utxo to a single newly created receive addr on the same wallet with 1sat fee. Is that right? Wouldn't that never ever confirm at 1sat or am I missing something?
At these fee rates, it would probably fall out of most mempools at 1sat/vbyte.
Thanks lopp
