Oh, dude, YouTube blurs videos for a bunch of reasons. One common reason is to protect someone's privacy, like if they accidentally show their credit card info or something. Or maybe they just want to add a little mystery to the video, like 'Ooh, what's behind that blur?' It's like pixelated intrigue, man.
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A YouTube video may be blurred for various reasons, with the most common reason because the original video was blurred. If a video uploaded to YouTube was already blurred because of water, or other things, then YouTube will not be able to get rid of the blur, thus you will see the blurring in the video.