Bitcoin UTXOs Explained Simply with Real Examples

Learn how Bitcoin Unspent Transaction Outputs (UTXO) work with real examples!

❗ CLARIFICATION ❗ You wouldn't consolidate your UTXOs and immediately go buy something. You would consolidate UTXOs when the fees are low (like 1 sat/vbyte). Then, 3 years from now when you want to buy something and the fees are 100 sats/vbyte, you'll be glad you have 1 UTXO vs. 100.

[AnthonyVGibby]

Appreciate the Bitcoin UTXO education. A lot of clarity has happened within this head of mine. *Thanks!*

[nonshatter]

2:34 - 3:13 sums it up perfectly.
Consolidating UTXOs.
Thanks for this.

[zacharyzoet]

This helps. Thanks. It occurred to me that kids should learn this in school eventually, like when we learned about telling time or using cash.

[Bdem]

Great explanation! Would love to see an extensive, deep dive into 5he mempool someday

[MannehN]

Great video and breakdown on UTXO. I can finally say I have an understanding of UTXO. Thanks a lot!

[gauravpoudel]

This is an awesome explanation.
Thank you so much

[vanieghamta]

that direct attack on SBF your videos are informative

[jrnmadsen]

I really like your attitude and approach, Great stuff 👍

[jded]

thanks for the explanation. under what conditions would one NOT want to consolidate UTXOs if they always result in fee savings?

[NappyWayz]

Thanks for this. The sad part is when I began using BTC, I used one address, because I didn’t know better. I was thinking an address was like a physical wallet. Now I have all of these UTXOs going to the same address. 😢 I can imagine all of newcomers doing the same thing. Now when I consolidate UTXOs, I can assume that wallet address will forever be attached to my name, including all other transactions. Just to note, when we hear, “get your money off the exchange, I can imagine users with a lot of UTXOs with BTC that may never be able to move in the future because of fees. 😢

[jintonic-odqe]

so even consolidate & get change back will create a new BTC address right? Is it possible to user an old address, like an option to choose an old address to consolidate or receive changes? Is it a feature for sparrow or what

[chopsuey]

In your example with the store (at around 6:00) Is the fee itself considered as an UTXO as well ?

[bigwesmukbang]

thank you for the video, very informative.

[scamianbas]

Hi, I don't see the benefit of merging UTXOs ? Consolidate for sending to store or for sending to another btc address results in the same amount of transaction fees right ?

[IniestaChiki]

Great analysis, thank you! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

[truestory]

Good basics, good examples.
Could go into more detail easily by talking about keeping your utxos separate depending on if they’re kyc or not
Another thing you could have talked about is the signing when sending off your ledger… and how that works… seems to me that Sparrow is nice clean graphics but really what’s the seed for if you only really need the password.

[ryanpeters]

I never even considered this, thank you for making this. Hopefully will save me some money.

[genesis]

Thank you for teaching me how to combine my utxos. But I sent the transaction through Sparrow at 2 sat /vb. And I’m still not in a memory pool and cost has risen a little. Will I eventually be mined in a block or how long might it take? Any advice will be appreciated.

[RIFLEMAN_SUMIT]

I am very happy to see your video brother, I want to know that some bitcoin is in my Phantom wallet and they are locked. now unable to withdrawal. There is a problem of rate set to unlock them, so please can you help me in this please?

[TheBsPodcast]

great explanation, we just included your video in our latest pod