Back in the days, people had trouble classifying bitcoin as a commodity or currency, the truth is there is no clear cut idea as to how to classify this s***.
you are wrong. people who understand bitcoin, specially back in the days, never had any trouble classifying bitcoin as a currency. then came the government a couple of years later and the "tax man" who tried defining bitcoin as something else such as commodity to take hefty taxes from anybody mining, owning, trading or using bitcoin.
Since it is portrayed as a currency it becomes a challenger to the rupee. since it cannot be considered a legal tender it has to be banned. thats how their recommendations goes.
i disagree. it has nothing to do with how bitcoin is "portrayed" it is all about bitcoin being decentralized which makes it something THEY can not control. it is a threat to corrupted systems be it the entire government body or just the banking system.