To be honest, I don't see reasons for me to mix my Bitcoin. That doesn't mean I don't care about my privacy. Of course, I am concerned about my privacy, but how will others know about my holdings? Let's say I withdraw from Binance to my BTC address. So they know who owns this bitcoin. What makes that risky for me?
just a few examples
Your government can ask for insight in order to collect taxes.
Some insiders can sell your information to bad people from your environment, so if you have a significant amount, it can create a lot of inconvenience in life. If you were to sell the house and get cash, you certainly wouldn't feel safe if everyone around you knew you had xx amount in your hands.
What do you mean we are using bitcoin to avoid taxes? I think we need to have privacy even from the government because maybe one day the government will confiscate our property without any reason . But I don't think using bitcoin is to avoid taxes and it's not a good move. If everyone uses bitcoin to avoid taxes , what would the country be like without taxes?
In addition, if owning a large amount of assets is very dangerous for us . So, people with assets up to tens of millions of dollars, billions of dollars still trade on those centralized exchanges. Are they in danger and are they unaware of those dangers? I mean it could still happen but it wouldn't be as severe as you describe.