I often see transactions with more than one input with the same address. Why?
When sending coins, the inputs used are previously received amounts [outputs from other addresses, or possibly even the same address].
The balance of an address is the sum of unspent inputs. When sending coins, you must reference these unspent inputs to create the outputs.
- Address 1Guy has 10 BTC in total, made up of 10 individual 1 BTC payments from various sources.
- 1Guy wants to send 3 BTC to 1Girl.
- 1Guy's transaction to 1Girl requires 3 separate inputs to complete the transaction.