I heard some hackers who hack others via ransomeware virus are asking bitcoins in return. So people are a bit worried and maybe that is stopping them, but that is no reason, hackers use USD also so stop using it !
No this is the reason why they are not using it, I even find this the stupidest reason you could thing.
I do think people keep away from it due to the bad name the bitcoin has these days, its still a investment right.