People trust bitcoin in the fact that there's no need for trust when transacting with it. Why? Simply because there's no power behind it, it's like that imaginary world where everyone is equal, the same idea is placed upon Bitcoin. It doesn't have to bow to anyone, nor does it need to lord above anyone, it's like its own separate world.
I will answer this number 2 first as that is the most important.
In order for people to trust bitcoin, it has to be safe and in order for it to be safe, it has to be regulated and we need the government to accept bitcoin not only in a certain country but it has to be globally as bitcoin is a global currency where we can use it to transact from border to border of the world.
It's already safe without regulations of the government though. There's simply no need for government to even accept it, they just have to acknowledge it's existence and let it be that. It's not like they can arrest anyone that owns Bitcoin when they state that its usage is illegal when Bitcoin itself can be the definition of freedom. Even in the past, when the government didn't notice Bitcoin, global transactions were already made and the like.
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it is indeed a negative influence, but honestly? They just stem from ignorance. Just a bit of studying would prove that the System of Bitcoin hasn't really been compromised in the past, most were just people entering the crypto scene blindly, believing it to be an easy way and their path to making money.