It's called a “mixer” because it mixes your coins with those of other holders to the point that none of them can reconnect to the addresses of their original wallets. So, when you use this solution, you can send Bitcoin or receive it while remaining completely anonymous. A coin mixer is a service that allows users to hide the origin and destination of transactions. Users send cryptocurrencies to the service, mix them with other coins or tokens, and then send the equivalent amount of “mixed coins” to a recipient's address, hiding the connection between the sender and the recipient.
Bitcoin mixers are solutions (software or services) that allow users to mix their coins with those of other users to preserve their privacy. According to research by blockchain analysis firm Chainalysis, for example, mixers are mainly used by regular Bitcoin users who simply want privacy. Also, are Bitcoin mixers necessary? Or is it legitimate to fall for cryptocurrencies? It depends on your goals when using these services. Companies that receive Bitcoin and return different BTC in exchange for a fee are known as centralized mixers, which provide a simple solution to the fall of Bitcoin.
Bitcoin mixers are classified as money transmitters by the Financial Crime Control Network (FinCEN). BitMix is an application for converting and mixing Bitcoin that provides anonymous transactions by routing all payments through its own system, taking advantage of the anonymity capabilities inherent to BTC and making it difficult to track currencies. Since the mixer knows exactly which user sent and received which coins, the mixer could re-establish the ownership trail.