...By the end of the year, I fully expect to see "Bitcoin funds terrorists in [COUNTRY]" stories popping up in the corporate media.
Well, the race is on for "legitimacy" in the public eye. With enough Silicon Valley money and mindshare, such headlines would be widely understood to be silly.
The same arguments were made at the birth of the internet, but technology won the day. Bitcoin is similarly strong, and we'll end up with regulated and non-anonymous exchange points and large services, which is fine. The promise of bitcoin for most people (in the West) is reduction of fees and transactional friction, and a store-of-value; eg, Gold 2.0.