Pycter never sells or uses your data.
Encryption is for the users who want stronger privacy guarantees.
Say Alice wants to send Bob a postcard from her holidays, so she drops it in the mail. How can she be sure the postal service won't read it along the way — perhaps at the request of a government agency? She can never fully trust the post, despite their privacy policy.
Imagine Alice could scramble the postcard in a way that it would be unreadable to anyone but Bob. Then she does not need to trust the post.
Encryption is exactly that: a process that scrambles and unscrambles data.
Encryption requires a key (a password). Only key holders can decipher the data.
Therefore, losing the key means losing your data. It is why Pycter does not enable this feature by default.
Encryption prevents Pycter from using your data, at the expense of you having to remember a password.