Bitcoin rises after report says early Facebook investor Peter Thiel is buying massive amounts

Peter Thiel's Founders Fund has bought millions of dollars in bitcoin, The Wall Street Journal reported Tuesday, citing sources familiar with the situation. Those holdings are worth hundreds of millions of dollars, the newspaper says. It wasn't clear whether Founders had sold any of its holdings, the report …
Google Alert – bitcoin

Wallet design: What to do with dust amounts in change?

I’m working on some quirks of a wallet I’m developing, and one of the issues is what to do with change amounts that are larger than dust ~600 satoshis, but less than a practical amount to be sent again with a fee. Should I return the near-dust amount as change, or just tack it on as additional mining fees?

For example, let’s say a user spends an amount that after paying to an output and a sufficient fee leaves only 1,000 satoshis as change. Should I send those 1,000 satoshis as change even though 1,000 satoshis is too small to be spent again with a sufficient fee?

Even with fees as low as 10 satoshis per byte with one input and output (P2PKH) you’d need at least 2,000 satoshis for fees.

I’m thinking it might be better to just put the leftover towards additional mining fees if change amount is below a certain threshold, say 3,000 satoshis. An address with just 1,000 satoshis is mostly useless, and would just add to the growing UTXO set that would likely never be spent. Does this approach seem appropriate, or am I “robbing” users of their dust?

Recent Questions – Bitcoin Stack Exchange

SF Bitcoin Devs – Blockstream's Andrew Poelstra discusses MimbleWimble ["Is a blockchain design w/ no script support & blinded amounts. Like proverbial black holes, tx outputs have no hair. This simplicity allows aggressive compaction & aggregatio

Bitcoin

What would be a safe way to store large amounts of Bitcoin long term to ensure safety from loss?

What would be a safe way to store large amounts of Bitcoin long term to ensure safety from loss?

Is it safe to use Bitaddress.org to generate private keys and use them to generate multi-sig address, writing private keys on a paper. Then signing transactions from my multi-sig address on offline computer.

Is that the best way?

Recent Questions – Bitcoin Stack Exchange

Can you send amounts that would typically be considered ‘dust’ through the Lightning Network?

Reading through the Lightning Network Paper, it seems that amounts sent through an intermediate node use the Hash Timelocked Output construction. The thing I’m concerned about with HTLCs is that they actually require their own output. Simultaneously, the transactions they are in must also be broadcast-able if the other party goes offline or become uncooperative.

So, let’s look at a scenario where Alice wants to send 1 satoshi to Carol, through Bob, with whom Alice and Carol both already have payment channels open. Alice sends bob a new commitment transaction with 1 satoshi deducted from her balance and a new HTLC output for 1 satoshi. Bob sends the same type of channel update transactions to Carol. The problem is, though, that HLTC output would be considered dust if it ever did actually need to be broadcasted! So this cannot be considered a valid guarantee of payment, since the transaction would not even propagate on the network.

Is that a problem? Part of the excitement over the LN is that you can send really small amounts, but it seems to me that you can’t actually send smaller amounts than you could in a real bitcoin transaction, because you have to be able to broadcast the transactions if the other party doesn’t cooperate or goes offline.

Recent Questions – Bitcoin Stack Exchange