It seems that if it was never confirmed, then it should go back in the wallet. Otherwise, it's in limbo forever. Is that even possible? It is either sent or not sent.
This makes a good point. Bitcoin isn't "in limbo."
At a low level, bitcoin relies on inputs and outputs, so the bitcoin is either in the original "spot" or the next "spot." Nothing gets 'returned' and nothing 'goes back' because it is either in spot A or in B. ;-)
There is a 3rd state though when an input was spend and the TX its used in is well known to the network. In this state is difficult to move it from its original spot to a different next spot. Id call that "in limbo" even though its an abstraction of what really happens.
The 3rd state isn't on the block chain though which is what I was speaking about. I do get the point about the tx being well known, but the bitcoin hasn't 'moved' at that point, just that the network is aware of an unconfirmed transaction. :-)
(my wallet has tens and tens of microtransactions, and i'm thinking about sending all those microtransactions to myself with a 0 fee, so when i use my coins the next time, i'll have to pay less fees because i'm using only 1 input instead of tens of them... I just want to make sure i don't lose my coins)
