The problem is this news affects the fence sitters, who'll be turned off. It also gives the regulators an excellent excuse to regulate bitcoin out of existence -- "Look, it's nothing but scammers and suckers."
As a bitcoin convert, *I* am not chomping at the bit to buy right now.
Bitcoin can't be killed by regulators. By design. For starters, it's global. No single country can makes rules for it, and global cooperation is not going to happen. Then there is the fact that
it can't be killed. The tech is out there, all they can do is make it illegal which is not going to hurt the price. Which is why they won't do that either.
False. illegalization will kill most of the demand. Most bitcoiners are hobbyists and investors who will listen to their government rather than risking going to jail, and most people are not anarcho-libertarians.