I can categorically say it that we all have that thought about "How possible can a currency be on visual system but can't be physically felt or hold as the fiats"?. We were mislead and wrongly influenced by the government that bitcoin developers were just in to steal our money with the digital financial technology format.
It was further a big doubt when the government was not in support of the bitcoin which we formally believed that the government was much knowledgeable than the masses but not knowing the government was specifically against it because it was a decentralized and non custodial financial system that they can not be politicized with their influence of authorities.
We actually thought the government has our back not knowing they were only being self centered for selfish interests.
Eh? You're confused about the idea of virtual currency that is simply held online? The thing that banks have been doing for decades before crytocurrency game along? That is quite a poor example that shows you are trying to be quite manipulative in your framing of cryptocurrency and where it should sit within the payment ecosystem. In the age of the internet, unless you live in a completely censored environment like North Koreal, or increasingly China, then you have pretty much universal access to all the free information that is out there and can teach yourself about pretty much any subject that you are inclined to learn about. I fear the reality is that most people are simply not interested in expanding their horizons very far at all.