So I've been doing a lot of reading on bitcoin privacy a lot lately, and I've got a question. I'm not sure if this is the right board for this, but I feel it is.
So let's assume an address has been made public and everybody knows who that address belongs to, can the owner decide to change that address and move his coins to another address without it showing on the bitcoin blockchain?
I mean can the wallet simply change the address at the request of the owner with verification like the seed phase, of course? Then on the blockchain the new address will not show where the bitcoin came from and the old wallet will just show $0 balance without showing where the coins where sent to?
Yes electrum wallet, blue wallets can change your bitcoin address to a new one for you to use to receive your bitcoin, and the new address which you are using to receive bitcoin will reflect on the blockchain. Bitcoin blockchain is transparent and every address with bitcoin in it will be on the blockchain because that's where your bitcoin is stored. It's just like a bank. Your cash is stored in the bank and you can use your atm card or cash book to send money to another account which the money must reflect in the account.
I’m curious to know more about this, does this mean the new address will only be affected, or if they decide to send using the previous address link, It still reflects on the new wallet or becomes invalid. If BTC is sent to the old wallet by mistake, what’s happens to it?