mike on Nostr: The problem is your UTXO is exposed when you send a transaction. To pay say $10,000 ...

The problem is your UTXO is exposed when you send a transaction.

To pay say $10,000 you send your $1M UTXO

Receiver gets $10,000

You receive $990,000 in change.

The problem is exposing your UTXO, which has two problems:

1. The recipient (and an attacker) knows you have $1M worth of Bitcoin.
2. Future quantum attack vectors will be on exposed UTXO's sitting in the mempool. You wont want to expose a $1M BTC UTXO unless you are actually spending most of it.

Agreed about Lightning, somebody recently sent a public $1M lightning payment.

Also, sadly agree about custodial exchanges or Bitcoin banks. These are going to be how a lot of people transact Bitcoin payments in the future. Most people like other people taking responsibility for their money it turns out 😂