How Bitcoin UTXOs Can Ruin Your Life

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In this video, I discuss Bitcoin UTXOs (unspent transaction outputs), and their implications for the privacy of those who use Bitcoin.

Unlike traditional bank accounts, there are no accounts or balances with Bitcoin. There are simply UTXOs that are moved/spent using your private keys. When your hardware wallet shows you a "balance," it is simply summing up all of the UTXOs that you have moved to that wallet.

A UTXO is simply a chunk of Bitcoin. It can be for any amount less than 21 million. When you spend a UTXO, the original UTXO is destroyed and your recipient is given a fresh new UTXO, while the "change" is sent back to you as a new UTXO as well.

If you are unaware of how UTXOs work, you may be leaking personal information whenever you transact in Bitcoin.

The solutions to this privacy problem include non-KYC Bitcoin, always using a fresh address to receive Bitcoin, CoinJoins, and post-mix privacy tools.

Not investment advice! Consult a financial advisor.

Banks confiscate money in Cyprus:

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#Bitcoin
#UTXO
#Privacy

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Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.

[Bitcoin_University]

WARNING: There are a number of scammers who are using my image and
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many videos he has. All of these guys have zero videos, while I have
hundreds. I also now have a checkmark next to my name, so that you can distinguish the real Trader University from the imposters.

[smorgan]

Matt I listen to every single thing you’ve put out. I have learned so much from you that I can never pay back. Just wanted to let you know how much I appreciate the work you do.

[dabones]

You are one of the very rare, honest and unconflicted crypto educators.

[funland]

Matthew, this is another outstanding video. No-one else explains these technical details of bitcoin so clearly and comprehensively. Thank you so much.

[simonweber]

These types of videos are so helpful for newer bitcoin maximalists like myself. I can spend hours searching all over the web, but when you make a video its so thorough, it answers pretty much all my questions!

[calvinvastelli]

Every one of these videos is pure gold. Midas touch Matthew

[FewAndSecret]

25:40 - 25:50 are the most important words you have ever spoken on this channel.

[vazertuche]

Awesome detailed video but one minor correction. No BTC is stored on the blockchain. All UTXO amounts are written as a binary number in Satoshis. So you don’t actually have a UTXO with .4999 BTC, you actually have 49, 990, 000 sats. Every Bitcoin transaction browser and wallet however, will immediately divide this number by 100, 000, 000 and convert it to BTC. I may not be a “whole coiner” yet but I take solace in the fact that I’m a satoshi multi millionaire ROFL

[freedm]

Absolutely find great value in your videos - please keep them coming - especially on the privacy issues. I have shared your videos extensively - always much appreciated.

[lazylonewolf]

Learned about this Cyprus thing from one of your other videos.
Got curious a bit so I stumbled upon a random Reddit post about the effects, and read its comment section. One of the commenters said:
"A friend of mine sold their apartment for about 400 000 EUR, to buy a house, and the money went into their account on Friday. On Monday they were supposed to make the payment for the house. Obviously on Monday they were only at 100 000 EUR and forget the house, together with the deposit which they paid for it, don't remember how much that was. They were devastated to say the least."

Calling it fucking brutal would be an understatement.

[TheZebracakez]

I love the more technical-oriented videos on Bitcoin. Keep em coming.

[AustinMiller-nrit]

Some of the simplest yet informative info I've found, great work.

[jokullna]

What you said about Bitcoin and tax evasion if done via the methods you suggest in the ending.
I think we should all assume that taxes are without contract and evading tax is fully legal and should be practiced and encouraged.
Loving tax is like loving the Mafia who beats you, if you don't pay for protection.

Thanks for this video.

[adamcarroll]

For anonymizing, you can use monero atomic swaps back and forth, still a bit early on the interface side but a good option

[c.p.]

Mathew you are polite gentle but firm and repeatedly focus us back on the core values and beliefs. You are a god send and a gift to the community. Cannot say enough. Thanks 🙏

[dogoku]

Just to clarify about Cyprus. It wasn't the banks who confiscated the money, it was the government that took the money on the behest of the International Monetary Fund (IMF) and European Central Bank (ECB) who was enforcing a lot of austerity measures on Cyprus in order to allow them to have loans in order to survive the crisis which was an indirect result of the 2008 global financial crisis (Cypriot banks where heavily exposed on Greek government bonds). The government also enforced withdrawal limits and would arrest anyone attempting to take currency out of the country (well known wealthy individuals got arrested at the airport with suitcases full of cash). Cyprus was IMF's and ECB's guinea pig and later on poster child, since we were able to recover fairly quickly, compared to other countries. Whether that's because or in spite of the austerity measures, I don't know, but Cyprus is a small country with a small economy, so it doesn't take much to recover.

[moneromatteo]

Hey Matt, much of the reason Monero has not appreciated as much is due to heavy shorting of the coin. The fundamentals are still very strong and once the shorts have to cover there will likely be an explosive upward movement. Not to mention that environmentally speaking (politics, regulation, surveillance etc.) privacy will become more of a premium. So many bullish developments that have not been appropriately priced.

[skraggiii]

I've started referring to my UTXO amounts in sats, since I am DCAing every single day, it helps to get into this mindset

[traviscollins-tr]

great stuff! Wish the courses weren't so expensive

[DrAcula-vlqc]

Thanks Matt! Does a UTXO have a time stamp from when one bought the BTC? Hence having tax implications?