It won't be easy for them to make it illegal since they know its decentralized and if declared illegal it will still continue to exist as far as there is internet..

Because they can't control this, so they want to be an illegal it had an opposite figure against to the flat money, so they want it to dissappear and dissolve as soon as possible it would affect to thier money movement, thats why they hate bitcoin so they pay some people to post fake news to spread it. To make investors decrease and support in stock market.

If they make using bitcoin illegal, there will be still many people trading bitcoin. In that time, people will try more to hide their identity and that's the worse case than what is happening now. Now most of the people trade especially with fiat are known.

i think that bitcoin can challenge the value transfer of traditional fiat system but on the other hand, if the government is deciding to ban such digital currencies then it would boost the shadow usage of it and those who are using Bitcoins for legal activities would not use it in that case but those who are using Bitcoins for illegal use, would keep using Bitcoins under cover and I fear that the percentage will increase drastically if there is any wrong move by the government and Many government show their negative attitude towards Bitcoin and ban it in their respective countries and this is some reason behind this. Bitcoin decentralised nature is the one of the main reason behind this

Because Bitcoin is not a major concern for them. They will not banned bitcoin in theor country because they see bitcoin is a very advantagable thing and not negative thing.

It's true that transactions used Bitcoin requires no third parties like banks, and this may drive banks to the verge of shutdown. But instead of banning it, some governments see its potential and benefits for their economy.

Government found themselves in a tight situation because Blockchain runs in the internet and it is difficult for the government to destroy internet because her own business also runs in the internet. The best they can do is regulations and officially ban bitcoin in their business and transactions.

this may be because bitcoin is too horrible and unstable, bitcoin prices are always moving up and down to make bitcoin does not make the government legalize bitcoin in the worldwide, indeed technology owned bitcoin very sophisticated and very strong but bitcoin prices will never stable, maybe that's what making the government reluctant to legalize bitcoin.

Because the government wants to control all the money that is put into bitcoin,There are only a few contries where the government fears bitcoin could be a danger when people use it to bring money out of the country.

Yest this is the main objective of the bitcoin project to eliminate the thir person in the transaction and to build an easy way of payment a p2p transactions in fast and easy way of sharing funds ang making payments. And you are right there is no way they can avoid the money laundering using bitcoin payments.