I think most of us know that
address reuse is a bad idea and it's better to use a unique one for every transactions to avoid security and privacy issues. If a website owner accepts bitcoin deposits and a user wants to withdraw coins to an address which was already used in the past, should there be a warning or even an error message or would that be too annoying for the user?
I'm curious about your opinions!
Well I don't it's a bad practice. Bitcoin is anonymous and so does the bitcoin address we use( for some). I think reusing the same address all over again makes it more secure for both party, let's say as a proof of ownership. Just like how it works in a staked address here in the forum, same thing as in a website, it also proves ownership or in a transaction to someone else. It proves that you are still the same person that uses the same address. Someone can claim to be that person yet can't use the old address so ye, I think the address is like a signature that proves who really is doing the transaction.
Bitcoin is not anonymous. The transaction history reveals a lot about addresses and connections between addresses.
Re-using addresses is bad from a security and anonymity point of view:
1) it reveals more about the owner of the address
2) when doing a transaction the public key of the address is revealed - this means that the additional protection layer by the hashing algorithm is gone
But forcing anything up on the user, is not the right way to do things. Wire transfers are less anonymous than cash, but still there are a lot of use cases why people prefer wires.