Disadvantages of anonymizing IP?

I would like to offer more privacy to visitors of my website by anonymizing their IP address(1 or 2 bytes). However, I would just like to know what analytical features I would lose out on, in order to make an informed decision.

For example, I’m guessing I’ll no longer be able to identify repeat visitors, right?

Thank you.

Returning visitors are not (only) detected by their IP address. Anonymizing IP should not limit anything. Every detection based on the IP is done before it is anonymized

That’s like having the cake and eating it! Very impressive. Is there any benefit to NOT anonymizing then?

How is that possible? I imagine if someone visits my site today their IP will be anonymized so if they come tomorrow there won’t be a way to compare their IP’s?

Visitors are “compared” by their visitorId. IIRC If that one is not set manually it will be generated (and hashed) from various data, like IP, Browser, OS,…