Economically Unspendable Bitcoin UTXO Calculator
"Since Bitcoin transaction fees are based not upon the value being transacted, but upon the data size of the transaction, it can become very important to ensure that your wallet balance is NOT composed of many low value UTXOs."
- "Given the recent rise in transaction fees, it seems timely to introduce a somewhat new concept when it comes to UTXO management - the economically unspendable UTXO," wrote Jameson Lopp.
"An economically unspendable UTXO is a UTXO that costs more to spend than it is worth."
- "To this end, I'm releasing a new tool for calculating the cost of spending a given UTXO. You can find it at https://jlopp.github.io/unspendable-utxo-calculator/."
- "This calculator will give you an idea of how much it costs to spend a UTXO with specific characteristics. When that cost is computed, we can determine what the viable floor value of that type of UTXO is for any given transaction fee rate, which means you should avoid receiving deposits below that value."
- "If you want to understand how transaction input sizes get calculated, check out the explanation on the Bitcoin Optech Calculator."
