This shows what they really fear from bitcoin, they are not afraid of bitcoin becoming a valuable asset, they are not scared of bitcoin becoming a store of value and displacing gold as the main form of protecting your wealth, what they are really scared about bitcoin is of bitcoin behaving like a currency and that eventually displaces their own fiat currencies and they lose all the power those fiat currencies confer to them and as such they lose the tight control of the economy they have now.
You can't be afraid of bitcoin as a competitor to your fiat currency in only two cases. First, when your fiat currency is the world's reserve currency and therefore the additional amount of liquidity can not significantly affect the monetary policy of your state. In the second case, you have such a weak and uncontrolled economy that the monetary policy of your state has no influence on economic processes. Therefore, I fully understand the concerns and even prohibitions of many states on the use of bitcoin as a means of payment, and not as a financial or property asset.