1. Unfavourable government policies such as bans and restrictions on Bitcoin activities
2. Slow spread of Bitcoin education and awareness. Many people in some parts of the world don't know much about Bitcoin.
3. Fraudulent centralized crypto platforms. Some exchanges and custodian services providers engage in fraudulent activities which gives the sector bad publicity.
All good points. Another reason, IMHO, is that bitcoin is still too hard to use for the average person. That person is not going to learn about fiddly hardware wallets, engrave their seed phases on metal plates, or do anything of the sort. For them, there needs to be a “Steve Jobs moment” that makes everything simple and safe.
Side note: I know this violates the “not your keys, not your crypto” mantra, but bitcoin awareness has gained a lot of ground over the last year in the investment space. Individuals and institutions alike have poured $19 billion into the iShares bitcoin ETF. Not small change.