What utility? Sure I can buy a few goods and novelties online with it, but I can't pay for food, gas, rent, insurance or any of those sort of things with it unless I convert it back to USD.

And what privacy? From what I've been reading on here, almost every exchange requires you provide photo ID, proof of residence, a bill of some sort or paystub, etc. Aside for the "big/important" things like insurance and rent, I've never had to provide any of those things when buying things online. What privacy?