Why do ordinary people feel afraid of Bitcoin?
It is not a very good idea to put people under names like ordinary, or normal, normies, or whatsoever. What is the meaning of ordinary? The only categorization we can make is coming from numbers. Wealth and individual income. If by ordinary you mean people in the middle class which is lately shrinking dangerously in all countries, then you should know they don't care about Bitcoin. The last trend is the trading of stocks in the USA because apps like Robinhood made it easy for everyone to become a trader without having to pay a huge fee to a bank or investment fund.
Nowadays, there are many ICOs, most of them are stupid and not worth it.
You haven't seen anything yet. ICOs in 2017 were coming in thousands. What we have today is very limited to what was happening a few years ago.
The prosperity of encryption technology is just like the technological prosperity.
This is called cryptocurrency technology, it is not just about encryption. Encryption is just a small part, cryptocurrencies are networks running in a certain way and using cryptographic proofs to distinguish ownership and record transactions.