I am not getting this fully and was thinking the same what will happen if lost my private key? Can we move our identity to new private key like we move our btc to private key?

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The idea here is not if you lose your private key, but to keep the "source" of your identity separate from your daily use. You would keep your nostr seedphrase saved in a secure place like your bitcoin seedphrase, and only access it with a secure computer or #seedsigner to generate a new keypair and distribute that new nsec to all of your nostr apps and #getalby hot wallet.