Bitcoin has always had scams, hacks, etc. This is not something new, and it is not a fault of the currency. The reason why there are so many scams in bitcoin is that people do not do their due diligence when using a service, especially people who use dark net sites.
Bitcoin is certainly not dead.
The same thing as fiat, there are many theft attempt as well and people doesnt judge fiat to be a bad thing or the fault of the fiat. The same thing should be do to bitcoin but many people just think that bitcoin are bad because of this thing. Bitcoin is not dead but it is dying for now