Bad.
Legitimate business will not want to associate with products that might damage their brand.
So should like every business in the world stop all machines right now? last time I checked 99.9999 of business deal with dollar, same as 99.9999 crime related activity.
Don't kill the messenger. What is done with a currency doesn't make said currency good or bad.
Well said neurotypical except for one thing: over the last 20 years I notice cash as opposed to credit cards is being regulated out of existence. When you deposit cash into a US bank, it triggers the Know Your Customer rules, and likewise if you try and get an excessive number of money orders at the local Western Union.
So I think bitcoin is going to slowly get a 'bear hug' from the state soon, and be 'regulated out of existence', slowly or quickly, just like cash. :-(
I think that what you described is inevitable some day, but no so soon.