Privacy is the goal of this evolving technology, and every form of privacy need to be implemented. Today I want to share the disadvantages of address re-use and remind everyone how crucial it is to generate fresh addresses for new transactions. A famous minor example happens in the forum every day, where accounts are linked to one another because of address re-use. While this won't affect our daily life, let's look into a real-life example.
Identity collapse is a process that links multiple Bitcoin addresses to one another through the Bitcoin transaction graph. The address makes the work easier for the operators. According to this
wiki There are publically-known databases that exist, right now, that have not only collapsed millions of Bitcoin addresses, but used publically-available information to link those collapsed identities to individuals, and these databases are being actively maintained.
Another disadvantage of address re-use has a lot to do with face-to-face transactions. When you re-use an address a merchant will be able to know all your transactions input and output and may involve the bad gangs to attack you and retrieve your bitcoin.
In a nutshell, address reuse helps your privacy and keeps everything clean. Stay private everyone.
The wiki above contains more examples of disadvantages of address re-use. Add your knowledge.
You are confusing
privacy with
anonymity. It is a common mistake to make
Bitcoin was never meant to be anonymous. Although it can easily be; for example by using a mixer or swapping Bitcoin->Monero->Different Monero Address->Bitcoin.
Although I do not recommend it.
You can still be identified by other markers - like if you send 10.2312355 Bitcoin and swap it back to another address as the same amount (who else is sending that exact amount to a single address? Probably only you~). Or if you pay with that address for a purchase which is connected to your bank account, E-Mail or even IP.