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Why is domain privacy used?

You need to use domain privacy on newly registered domains in order to protect yourself from Whois email harvesting and subsequent spamming. If you do NOT use privacy on newly registered domains, the email address you use will be flooded with SPAM and many of the spammers will even call you to try to sell you something.

I cannot recommend domain privacy (whois protection) highly enough.
 
Domain privacy helps to hide the real information that is publicly shown in the WHOIS directory.
If data is not hidden there are chances of data stolen , malware , hacking attempt , etc.
 
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