How high transaction fees threaten cryptocurrency institutions’ solvency

Posted on December 22, 2017January 9, 2018 by prestonbyrne

I guess you really can have too much of a good thing, even in Bitcoin:

Very interesting analysis by @LaurentMT. @coinbase / @GDAX has a big issue. Because of the fragmentation of their utxo set (tx inputs and outputs) they would have to pay miners more than the actual withdrawal amounts. https://t.co/B94S2MNCSo

— WhalePanda (@WhalePanda) December 22, 2017

For example, this entity (https://t.co/wyTt53e0aX) is a wallet controlled by Coinbase. To date, it owns around 203 BTC split in 1,464,545 utxos !
With BTC at $15.8k, it means $3.2M with an average utxo value of 2.2$. #DustInTheChain

— LaurentMT (@LaurentMT) December 20, 2017

If the above is right, it constitutes a major own-goal by companies that should really should have known better.

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