People will start to associate bitcoin with underground activities
That's the whole point of bitcoin. It's cash for the internet and ANYONE can use it for ANYTHING just like cash. If I want to sell something legal I can. If I want to sell something illegal I can. If I want to sell a jar of fairy farts I can. All you need is a buyer and seller and that's it. No middle man, no mediator to say what is ok and what is not.