If bitcoin is indeed used by majority for illegal transactions, it will surely meet its end.
That's why one of responsibilities is to look for each other and report any known illegal activities made tru bitcoin.
And this is one tough job to do, given the pseudonymity of bitcoin. To police and watch transactions is something dreadful to do. Remember that transactions happen merely with wallet addresses alone. Apart from the jargonish address (of which very few could remember their own), i doubt that one can easily identify a wallet address and say "that's my uncle's bitcoin wallet address there!"
And that is the OP's point, how can we battle illegal activities when bitcoin can work under the shadow of near anonymity thru pseudonames? And the OP is quite worried that this attribute of bitcoin might jump start its death.
Yet, the gift of pseudonymity from bitcoin being used in illegal transactions is something that rests in the hands of the users really. Truth to be told, there are bad people around us, even if we put so much security around bitcoin to prevent it from any maliscious intent and usage, these people will always find a way.
bitcoin is often used by a number of parties to buy illegal goods, such as drugs and buying and selling weapons for terrorism networks. cryptocurrency is different from cash. Because, cash can be tracked, including if there is abuse, such as money laundering or terrorism financing. The millionaire also said investing in cryptocurrency was a new idea. "I think the speculative nature of ICOs and cryptocurrency is very risky,"