Quote from: Crypto-DesignService on March 07, 2019, 01:57:43 PM

UTXO is like a pocket wallet with different money denomination but provides the same total balance of what funds you currently have.

Yes, exactly right. Let me try to explain this more in a easier way on how bitcoin and the fiat money works.

How inputs and outputs work in fiat money?

Situation 1 :

Suppose consider that you are buying a coffee in a lounge for $10. But when you check your wallet, you have $15. This $15 is your input i.e you don't exactly $10 to pay to the cashier hence you are giving your $15 as input. These inputs are the sum of previously collected money by you i.e they can be brought by you from your home or they could have been given to you by your friend etc. In return to the $15, the cashier takes $10 as the bill and pays you $5 back as a change. You have kept this $5 in your wallet and you haven't spent them. These are called as Unspent Transaction Outputs i.e you pay your input to the cashier and in return to that he has given you output.

Situation 2:

When you are leaving for your home with this $5 which is your UTXO, you are spending $3 for buying a book. Here the $3 comes from the Unspent Outputs by you which is $5. Suppose assume that the cashier of the coffee lounge has paid you $5 as a single note. So, to pay the $3 you cannot split the note into two. Hence the $5 act as an input to this transaction which in return the cashier pays you $2 which is your UTXO now.

How inputs and outputs work in bitcoin?

Bitcoin is a digital money. There is a long standing quote that Anything produced digitally can be copied and reproduced. For instance consider the above situations where the you are a fraud and you can print your own money. You may fool him by giving away duplicate outputs. By this way, the money is created twice and such a situation is called as Double Spending in cryptocurrency. When the UTXO are spent twice, this creates your money twice and by this way he can be fooled. Hence when you pay a cashier, they wait for the confirmations since after certain confirmations it would be impossible to spend the coins twice.

For example, let us consider you have 2BTC in your wallet which are the UTXO of previous transactions as explained above in case of fiat money. You have bought an article which is worth 1BTC. Here in this situation, you need to pay all the 2BTC as the input and the 1BTC will be returned to your wallet as UTXO. This can be further used for various transactions in the future.

Quote from: Crypto-DesignService on March 07, 2019, 01:57:43 PM

"UTXOs are important for ~~Komodos~~ atomic-swap-powered decentralized exchange. Komodo is the world leader in atomic swap technology."

I am not completely aware of Komodo, but they seem to be swapping your Bitcoins to other coins in a decentralized way. Since UTXO are a core part of bitcoin to prevent double spending, I believe this is the reason they are preferring more on UTXO.

Quote from: Jet Cash on March 07, 2019, 12:42:07 PM

Of course this needs to exclude lost coins, and those of Satoshi. My feeling is that it is not really representative, as we have seen large blocks of coins moved by whales, and we don't know if those are genuine sales, or just movements to reduce the size of the UTXO pool.

If the UTXO were to be excluded that could reduce the total supply of the bitcoin to a larger extent. Since UTXO are the core part for the calculation of the ~~circulating~~ mined supply, they should be included to prevent further speculation in the community.

Quote from: Jet Cash on March 07, 2019, 12:42:07 PM

So what do you guys think, should we ignore the UTXO when we are trying to work out how much Bitcoin is in circulation?

Most of the people assume that the total bitcoins mined till now are the circulating supply. But as you have said, this doesn't make sense actually and we should completely ignore the UTXO of probably satoshi's at least to have a fair value of the circulation supply. As per the Google Dictionary,

Quote

Circulation :

the public availability

Is the satoshi's coins public available to spend? I agree with your point in this totally.