<p>In satoshi client, the "accounts" therein are only a convenience for labeling of receiving addresses. They don't matter for sending at all.</p>

<p>If you receive bitcoins, the balance is not added as in bank, but the amount is saved as "unspent output". Client only shows all these outputs together as one available balance. It doesn't matter whether one address has n unspent outputs, or these are on more addresses. When you send bitcoin, the fee is based on number of these outputs used and it is higher if they are very recent. So trying to consolidate them won't help much, only that you pay the fee sooner. And it isn't done "while you sleep", it's done by simply sending your whole balance minus fees to yourself.</p>

<p>In other clients, the fee algorithm can be completely different.</p>

CC BY-SA 3.0
2012-12-02T22:03:42.560Z
2012-12-02T22:03:42.560Z
Juraj
<p>My understanding is that it's possible for extra bitcoins to be left in several accounts within my wallet.  The scattering of these coins into different accounts may cause future transactions to become larger in size (Kb), and therefore more costly in fees.</p>

<p>Does it make sense to prematurely consolidate these small accounts into a single "spend account" at some point? (perhaps while I sleep?)</p>

CC BY-SA 3.0
2012-12-03T03:13:49.493Z
The fact that they're in different accounts doesn't matter. What matters is that they are distinct transaction outputs. What you would do is consolidate these small outputs into a single larger output.
David Schwartz
CC BY-SA 3.0
2012-12-03T18:20:53.377Z
@DavidSchwartz What I'm getting at is what if I have 1000 customers who paid me to 1000 addresses.  I have 0.002 BTC in each account.  If I spend 2.0 BTC on something won't my transaction be huge? .. and I'll have to pay a large fee?
makerofthings7
CC BY-SA 3.0
2012-12-03T19:59:55.643Z
You'd have the same problem if they all paid you to the same address. You'd still have 1,000 transaction outputs to "gather" if you tried to spend 2 BTC, so your transaction would still be huge.
David Schwartz
CC BY-SA 3.0
2012-12-03T21:05:36.413Z
@DavidSchwartz Could I divide that into smaller "free" batches so that when the time comes I won't have to pay a fee?
makerofthings7
CC BY-SA 3.0
2012-12-03T21:08:03.390Z
Theoretically yes, but practically, there's probably no point. For one thing, it would mean your final transaction would be using newer coins, which counts against it.
David Schwartz
CC BY-SA 3.0
2012-12-03T22:02:44.193Z
@DavidSchwartz You hit the nail on the head (of my recent questions).  If these small transactions were collected, during low expected utilization (low spend hours), then I avoid the fee after I wait N hours.  It's like a logical defragmentation of my wallet balance. no?
makerofthings7
CC BY-SA 3.0
2012-12-04T02:47:23.403Z
possible duplicate of [In order to reduce fees, can I 'consolidate' my wallet by sending the entire balance to a new address in the same wallet?](http://bitcoin.stackexchange.com/questions/792/in-order-to-reduce-fees-can-i-consolidate-my-wallet-by-sending-the-entire-bal)
Highly Irregular
CC BY-SA 3.0
2012-12-04T02:54:20.717Z
This question doesn't ask how, so I've asked that question here: http://bitcoin.stackexchange.com/questions/5583/how-can-i-combine-all-the-tiny-amounts-ive-received-while-minimising-transactio
Highly Irregular
CC BY-SA 3.0
2012-12-04T03:02:49.067Z
@HighlyIrregular I'll give you rep for that one (Though that is the question I was going to ask next in sequence and link to them all) ;)
makerofthings7
CC BY-SA 3.0
2012-12-04T03:11:50.897Z
It's something that's been needing attention for a long time... thanks for raising it again! I suspect it won't be a simple answer though.
Highly Irregular
<transactions><transaction-fees><satoshi>
Does it make sense to "collect" smaller transactions balances into a single account during low activity?
makerofthings7
# Does it make sense to "collect" smaller transactions balances into a single account during low activity?

(Asked by: username_0 on 2012-12-02)

My understanding is that it's possible for extra bitcoins to be left in several accounts within my wallet. The scattering of these coins into different accounts may cause future transactions to become larger in size (Kb), and therefore more costly in fees.

Does it make sense to prematurely consolidate these small accounts into a single "spend account" at some point? (perhaps while I sleep?)

**Tags:** transactions, transaction-fees, satoshi

> **Comments:**
> **username_1**: The fact that they're in different accounts doesn't matter. What matters is that they are distinct transaction outputs. What you would do is consolidate these small outputs into a single larger output.  
> **username_0**: @username_1 What I'm getting at is what if I have 1000 customers who paid me to 1000 addresses.  I have 0.002 BTC in each account.  If I spend 2.0 BTC on something won't my transaction be huge? .. and I'll have to pay a large fee?  
> **username_1**: You'd have the same problem if they all paid you to the same address. You'd still have 1,000 transaction outputs to "gather" if you tried to spend 2 BTC, so your transaction would still be huge.  
> **username_0**: @username_1 Could I divide that into smaller "free" batches so that when the time comes I won't have to pay a fee?  
> **username_1**: Theoretically yes, but practically, there's probably no point. For one thing, it would mean your final transaction would be using newer coins, which counts against it.  
> **username_0**: @username_1 You hit the nail on the head (of my recent questions).  If these small transactions were collected, during low expected utilization (low spend hours), then I avoid the fee after I wait N hours.  It's like a logical defragmentation of my wallet balance. no?  
> **username_2**: possible duplicate of [In order to reduce fees, can I 'consolidate' my wallet by sending the entire balance to a new address in the same wallet?](http://bitcoin.stackexchange.com/questions/792/in-order-to-reduce-fees-can-i-consolidate-my-wallet-by-sending-the-entire-bal)  
> **username_2**: This question doesn't ask how, so I've asked that question here: http://bitcoin.stackexchange.com/questions/5583/how-can-i-combine-all-the-tiny-amounts-ive-received-while-minimising-transactio  
> **username_0**: @username_2 I'll give you rep for that one (Though that is the question I was going to ask next in sequence and link to them all) ;)  
> **username_2**: It's something that's been needing attention for a long time... thanks for raising it again! I suspect it won't be a simple answer though.  

---

## 1 answers

### Answer by username_3 on 2012-12-02. Score: 1

In satoshi client, the "accounts" therein are only a convenience for labeling of receiving addresses. They don't matter for sending at all.

If you receive bitcoins, the balance is not added as in bank, but the amount is saved as "unspent output". Client only shows all these outputs together as one available balance. It doesn't matter whether one address has n unspent outputs, or these are on more addresses. When you send bitcoin, the fee is based on number of these outputs used and it is higher if they are very recent. So trying to consolidate them won't help much, only that you pay the fee sooner. And it isn't done "while you sleep", it's done by simply sending your whole balance minus fees to yourself.

In other clients, the fee algorithm can be completely different.


---

