While perhaps many people in this world do not mind the government intruding in their financial activities, there are many who do so, and it's usually primarily the government they're trying to hide their money from. It's the same as saying that your bank account is 99.9% anonymous or private, just because "only" the bank and the government knows about it.

Sure, but there is apparently a market emerged from actual use of privacy coins. Evidently, people need them. Privacy in bitcoin can be protected with coinjoin, but it'd be foolish to think that it's private otherwise.

If your identity is already known by the government and also by the exchange, where is the privacy? What else are you hiding, and who are you hiding it from? 
 
If you want to remain private, the best way is to hold your coin in a non-custodial wallet. You can hold the large amount on a separate wallet, which could either be a hardware wallet or an open-source wallet that you will be sure of your coins being under your control. 
 
If your fear is about linking your holdings with a public address where you want to make some purchases, that can only happen if you want it to happen. You are not limited to having only one wallet, which means you can fund one particular wallet with a small amount, which you can consider as your spending wallet, and each time a store tries to track how much you hold, there will always be little to nothing in that wallet.

Bitcoin is one of the largest among other cryptocurrencies so you choosing Bitcoin for investment is more preferable and acknowledgeable than any other coin because Bitcoin give rice to order currencies to increase so without bitcoin being increased I don't think that any other currency can increase the currency of digital in particular so I believe that Bitcoin have the procedures for increment so if you are investing in Bitcoin you should not have any regret because all this altcoin can make you to lose your money for the Investment of cryptocurrency when you purchase a coin that does not have a good value so it is better for you to purchase a coin that you know that the value cannot die in the market but it can only be rotational either it fall or it increases so that is the situation of Bitcoin right from the beginning

Privacy is never pointless.

The government is all up in our business even if they’re not supposed to. But I guess if you are not too bothered by that, it’s fine for you. You don’t have to protect your privacy but for some, it’s a big deal and there should be at least an option for them to protect themselves in a way they want to.

You may not need privacy-centered cryptocurrencies or privacy-enhancing processes, but others might need it. So, it isn't really pointless. After all, what you consider privacy might not be privacy to others. What's sufficiently private to you may be insufficient to others.

In the first place, exchanges and governments aren't a single individual. Do you know how many people in a single exchange alone have access to your personal information and transaction history? Do you even know how they handle private data? Are you sure they aren't sharing it with others unnecessarily or secretly? Or selling and trading them?

Bitcoin is pseudonymous by design, whatever you're doing basically means that you are exposing yourself somewhere along the chain. This isn't ideal and probably not something that people are looking to utilize privacy-enhancing coins for. By far, criminals are not going to bother tracing your funds because they don't have enough resources. Governments, or state sponsored actors in that case have considerable resources to do so and can absolutely know everything about you. They are the entity that you should be worried about.

Then it is not Anonymous if other Third Parties see it.  This method only helps if you really do not care about the risks of using Centralized Exchanges and if you only care for the majority of the people who are using the Internet not being able to trace your Bitcoin.  To people like me who care about having Privacy as close to 100 percent as possible, this method is useless.

I like BlackHatCoiner's point. If the exchanges and the government know your balance, it is similar to a bank. Yet, I consider Bitcoin more safe than banks. But if you want, you can increase your privacy further by using the mixer services. But make sure not to move your funds directly to the centralized platforms after using the mixers. You can do at least two transactions between your wallets and then you can send funds to centralized platforms if you want to sell your Bitcoin.

If you bought your bitcoin from a KYC institution, there is no way to erase that record of your purchases.

All you can do to give yourself on-chain privacy is to use one of the many CoinJoin methods or swap UTXOs with someone else to break the chain of ownership on those UTXOs.

Once you buy from a KYC platform, there's no way to undue that to regain your privacy.

You have to take privacy into your own hands. Monero is ideal, but in terms of Bitcoin, privacy is a nightmare unless you take proactive measures.

I never talked to Satoshi, but I'm pretty sure that he didn't intend to create banking 2.0 and its subsequent monetary ecosystem requiring humiliating selfies for KYC laws and approval from banking entities, just to open crypto accounts and withdraw funds. Bitcoin users certainly haven't helped in this regard, as they've chased profits over any remaining cypherpunk, anti-bank ethos, but this is to be expected.

The Bitcoin devs, however, have always been in a position to do more. They pay lip service to privacy sometimes, but they've made it clear that they have taken the path of least resistance and abide pretty much any banking regulation, no matter how draconian or unjust, rather than create a privacy-respecting ecosystem outside of the banking system. They could have implemented privacy-centric features into Bitcoin Core if they really wanted to, but that ship sailed long ago. No one expects them to go full Monero, but they've had opportunities (native mweb, native coinjoin, etc) to increase Bitcoin privacy, but they are content to create banking 2.0 instead. They have not supported privacy advocacy within the law. They have not pursued lawful means to circumvent privacy-invasive analytics and regulations.

So it's up to you. And you have to learn it on your own.

You can always use mixers as explained here: https://bitmixlist.org

Learn how to safely use Tor (and i2p), the Tor Browser, and familiarize yourself with using onion links.
For example, here's the onion version of the bitmixlist.org site: http://kmzvdt7443fqisu27xw3saxv7rn2pmgx33zd2cy54ev2mbba2xjoziqd.onion

Tails OS, which has a Bitcoin Electrum client built in, routes all traffic through Tor (but it won't help you if you're dumb).

For any cryptocurrencies you use, its best to run your own node if possible.

You can use exchanges and services that don't require AML KYC information: https://kycnot.me

Also keep in mind that chain analytics isn't just about IP addresses, but also patterns like timing, amounts, and other correlating data.

And as most users know, avoid address re-use whenever possible.

Also keep in mind that you need to be cautious on this forum, too. It's been hacked before, with user names and password exposed, and high-profile members both in the past (such as Gavin Andresen @gavinandresen ) and present ( forum admin Michael Marquardt @theymos ) have cooperated with law enforcement agencies that actively profile users and engage in blockchain analysis. There are also a lot of shady dealings that newer users might not know about, such as infamous donation scam with Slickage Studios that theymos himself participated in, scamming thousands of Bitcoins from unsuspecting forum members. I know I'm mentioning security in terms of privacy, but there's a lot of overlap between the two. Further, it's worth considering that some accounts change hands easily, and you need to be extraordinarily careful whom you trust. Remember, above all else: not your keys, not your coins.

Edit: Bisq is great for exchanging Bitcoin in a decentralized way without the burden of AML/KYC getting in the way.