I guess that lots of people know about Bitcoin and even how it works, they just pretend they don't either because they're afraid of the $5 wrench attack or something else. After the notorious hardware wallet leaks, I checked the leaked dbs just out of curiosity and there were lots of people I know, including those who mentioned they had no idea about Bitcoin or even were openly anti-Bitcoin.
Safety of money is a thing that haunts many people and comparing with a bank deposit there are less versed legal systems which can handle such a case. Eventually though things will get smoother but right now it is not so and hence we can only keep ourselves safe and hope that in future the legal system becomes mainstream enough about crypto.
Cybercrime is increasing at an exponential rate while the law enforcement is lagging behind in many countries. This deters potential bitcoin users to push this idea aside and keep away from crypto.