Most potential investors are hiding behind the walls because of the fear generated by the governments in regards to cryptocurrency. Once crypto gets the approval of all governments, both new and some old investors will invest without much fear and this will increase the demand and usage of crypto in our daily lives. The value of the market will increase as well.
You are right. But unfortunately, the government will never legalize crypto because they are afraid that the community will commit illegal acts using crypto. Although fiat is also often used for illegal actions, but crypto is anonymous and decentralized. it may be very difficult for the government to look for people who commit illegal acts using crypto.