However, I think it's very easy to understand where it started and why it generally isn't in bad faith. Digital currencies (of which Bitcoin is the largest and most well known) make certain types of crimes easier (drugs by mail, ransomware). Those crimes (as they are understood) always involve a digital currency so they feel new (even if they aren't in many ways). Most people don't pay attention to digital currencies so it's not surprising that they associate them with new behavior that doesn't seem possible without them.
I also suspect that, if you were to break down digital currency activity, that most exchanges of goods and services (as opposed to investments) do choose to use a digital currency because it evades some regulatory processes or laws. With the transaction cost of Bitcoin at over $4[1] (down from over $50 recently), I really doubt that people are using it for many exchanges of goods or services where its digital qualities don't enable the transaction in some way.
[1] https://ycharts.com/indicators/bitcoin_average_transaction_f...
Edit: added a clarification about ransomware and drugs-by-mail. Ransomware and "darkweb markets" are based on older practices that, to an extent, are distinct because of digital currency. Corporate espionage and ransom demands are quite old, but we call generally call it "ransomware" when the extortion is based on holding digital assets and paying digitally as well.
The only thing that's actually public are the public keys of the transacting parties. Public keys can be anonymously generated for free. It only becomes possible to deanonymize transactions if the money actually touches a deanonymized terminus.
Even assuming all the fiat off-ramps are properly KYC'd, it still gives the criminal unilateral control to arbitrarily decide when and where to risk deanonymization. You can commit a crime, then wait years for the heat to let up and make sure you're in a safe country without extradition treaties.
The thing is, this is a strange argument, you want a sudden world wide adoption, like, tomorrow every biz owner wakes up and decides to accept bitcoin, so that you can buy your coffee at your local starbucks, have you thought through this? how does the total adoption happen what steps should happen before.
I assume it has to do with using a transparent open ledger...
It's not that hard to imagine when you don't have to send anything physical.
Most trusted BTC exchanges are going KYC so even tax evaders have to start reconsidering.