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That’s a very good breakdown. A lot of people don’t realize how their UTXOs can start to stack up and spread over time, especially if they have been using Bitcoin for a while across different cycles. What you explained is exactly how it happens..... one transaction here, another there, and before you know it, you have several small UTXOs in different wallets.
I also like the point about keeping some wallets as intermediate ones. It makes a lot of sense to have levels between hot and cold storage, depending on how often you plan to use the coins. Keeping track of all this might seem like a lot, but if someone is serious about holding long term, this kind of planning will really help later....
Yes. It is a good habit to keep track of wallets, especially the ones with larger transactions connected with them... And it can take a bit of time to figure out some organized way to keep track..... maybe keeping track of the colder storage or medium storage might be more important, and maybe the hot wallets might have more transactions and harder to keep track, so guys have to figure out if they are able to keep track of everything or just the transactions within certain wallets.
Some people suggest that the tax treatment of transactions to treat them as capital rather than currency can cause some accounting burdens which can disincentivize spending bitcoin or conducting smaller transactions... yet surely if a wallet is divided into accounts, then at least the accounts could be of certain categories including if you have an exchange that you use, then you might send all of the transaction from that exchange to the same account, so then at least you know that the transactions are related to that exchange within that account.
I also share in your thoughts about tracking of wallets being a good habit, particularly those wallets with huge or bigger transactions. And it may potentially take some time to figure out an organised way to effectively do this. But focusing on tracking cold or medium storage might be more appropriate, since hot storage wallets may actually have an endless and ton of transactions, making it almost impossible to keep track of. Guys do need to actually figure out what's manageable for them, whether it's to track everything or just to focus certain wallets, it's entirely up to them to decide.
I also think the tax treatment stuff you mentioned above makes a lot of sense too. When guys treat Bitcoin as capital rather than just a mere currency can potentially create some accounting headaches, and this could also disincentivize the use of Bitcoin for smaller transactions, like using Bitcoin to pay for goods and services. Also, I feel it's also a smart move to divide a wallet into accounts for different categories, like one account for transactions from a particular Wallet, as it can be quite an effective way to keep things pretty much organised. This way, you'll be able to know that the transactions in that account are actually related to that particular exchange.