This is the reason we should enforce "know your customer" laws on Bitcoin such that we have government ID for everyone for every transaction that hits the chain.
You need a citation for that, because according to experts “In 2020, the illicit share of all cryptocurrency activity fell to just 0.34%,” reported Chainalysis [1].
For many, it's a hedge against inflation, for others it's the next potential global reserve currency, for some it's just a savings mechanism. There are more rational reasons than just crime that you're ignoring.
1: https://www.thomsonreuters.com/en-us/posts/investigation-fra...
Is the takeaway that the crypto bubble stands for 99.76% of the activity?
You might be surprised by the places where crypto has the most penetration. https://bitcoinist.com/cryptocurrency-adoption-highest-5-cou...