Well, if you look at the numbers, you see tons of usage in crime/gambling with bitcoin. Regarding the privacy - why do you think bitcoin is private? It's clearly not. Anyone can trace you. How is that more private?
I disagree with your view that bitcoin users are more in the criminal or gambling sector and where do you get that number so that it can be ascertained. When you intend not to be tracked due to privacy issues, it is better not to use a wallet or exchange that requires kyc so that your privacy can be much safer. Our mistake is not understanding privacy so that we only talk as it is according to a narrow understanding. But if faced with material benefits we will ignore privacy and will try to do whatever is asked because the most important thing is profit.
Don't forget that fiat currencies are also associated with many crimes, gambling and other cases but can we generally categorize it as the fault of fiat currencies themselves. This is just the behavior of some people or groups and they use bitcoin or fiat currencies to commit crimes, but the essence is not bitcoin and fiat currencies themselves that need to be blamed.