Imagine the case where a drug dealer converts the dirty money to potatoes chips and send to Colombia. Will the potatoes chips reputation damaged? No. Replace it with gold, will it have a damaged reputation? No.
Why when it's about Bitcoin the mass population feels the need to label it as criminal paradise currency.
Well, because it is. I can sell heroin, shove 100k into Bitcoin ATM's and send it anywhere instantly. Can't do that with gold, or anything else really.