Ubuntu doesn't do this and doesn't do this because of shoulder surfing reasons. So, it's a security thing. How much security does it provide? That's up to you to decide. If you want feedback in the form of asterisks while typing passwords in the terminal, this is how you do it.
Astute folks will realize this is an article from the original site. It's mostly re-written, but the end result is the same.
linux-tips.us
Feedback is awesome, though I'll be in and out this weekend.
Astute folks will realize this is an article from the original site. It's mostly re-written, but the end result is the same.

Make Ubuntu Provide Feedback (Asterisks) When Typing Passwords In The Terminal • Linux Tips
By default, Ubuntu doesn't show anything when you type passwords in the terminal. They made this decision for security reasons. Shoulder-surfing is a thing.

Feedback is awesome, though I'll be in and out this weekend.