For those who have invested in Bitcoin and either have no profit, or are making losses, or have very little profit, they will not be happy with option 2, since for them their investment will forever remain empty. And the truth is that there are very few people who really care about their privacy, those who think about the consequences. Almost every newcomer who comes to crypto must undergo verification when registering on the exchange, and almost everyone does this without any fear.
I think it's normal and people learn about privacy when they already quite mature, so every people must have share their identity to any site, video game etc. The point is if we already know about privacy is a big matter, we shouldn't continue our mistake to share our personal information to other site and avoid to use the site or account that we have shared our personal information.
At least your activity will be watched until at that time, not entire your life.