There is nothing wrong about Bitcoin normally. But the volatility determines the last decision for governments. And they don't want to make a currency that is very unbalanced their legal tender. And some of these governments don't even want to accept payments with Bitcoin. Maybe Bitcoin will be added as a payment method everywhere in the future. But I don't expect that governments of big countries will lean towards making it legal tender.

You know taxes are a problem here. bitcoin does not take money from banks. but if everyone uses bitcoin, the government can't tax it, they don't have regulations that can regulate it. so before there are regulations governing crypto released, the government will not want to accept bitcoin. and it could be a problem for the country's financial system. we know decentralization has an advantage for users, because it can't be controlled. this is another reason why bitcoin is hard to accept.

There are two main reasons why countries do not accept Bitcoin. The first reason is that many countries lack knowledge about this new technology. Many of the sitting government officials and those who create laws and policies are old enough to fail to thoroughly understand and appreciate something which is very alien to the current economic, financial, and monetary designs. The second reason of course is that other countries see Bitcoin as a threat to their power and control. Money matters should be within the control of governments.

The thing is that governments always want to control everything, especially finances, so they don’t want to accept Bitcoin as it is unregulated. Moreover, they can’t cope with anonymity if people use Tornado Cash for example.
As a result, they are trying to replace cryptocurrencies by creating digital yuan, but it is not the same as classic crypto as  they will still be regulated by the government.

They don't accept and legalize Bitcoin for so many reasons and we have not to urge them to do that as it was their choice. Will have to respect them. We could really think and ask why and why? No matter what we do, even we spend the whole day explaining to them, that it never has an effect because, at the end of the day, they will not able to understand what you saying.
if they believe and trust crypto, they surely had come and embraced the new system in the first place but they don't, and what else we have to expect them. What we are going to do is to wait until the moment that they will open their minds and look on the positive side of Bitcoin and I know they will do it.

Many countries around the world are already accepting bitcoin as a form of payment because some governments have already realized the benefits of integrating bitcoin and cryptocurrencies into their economy. El Salvador, despite discussions to the contrary, is already accepting bitcoin; Japan also passed a law making bitcoin a legal form of online payment, eliminating taxes and establishing a framework for regulatory framework for bitcoin-based businesses. Australia also took a stand in favor of cryptocurrencies and removed the double taxation that penalized users. Countries like Switzerland, Antigua and Barbuda (in the Caribbean Sea), Amsterdam and Malta are some of the countries that have facilitated the use of bitcoin and other cryptocurrencies. To be clear, we all know that bitcoin is not illegal because it poses any risk to citizens, because it's an alternative P2P monetary system for people to get rid of state oppression and have freedom to control their money, so bitcoin is seen as a threat by the state, because the system wants to have absolute control over people, and bitcoin has come to destroy the absolute control that some countries wish to have over their citizens.

Bitcoin is not a ponzi scheme or something like that but still some very "clever" people claim that. We are talking about a currency which has been in the market and grown big for more than 10 years. How in the hell would Bitcoin be a scam project? I really don't understand the logic of that kind of people. When it comes to being illegal or legal, it is depending on the laws of your country in the end. If there is no some legislation that decides Bitcoin to be illegal in your country, it is not illegal. Only in the other case we can say that it is illegal.

The nature of how bitcoin is designed, and how it is decentralized and cannot be controlled by anyone makes it a huge competitor for dishonest people who don't want it to take the place of the regular currency, the problem with our governments is that they are not run by politicians or votes they are run by business people and by the richest man who dictate how laws are made and if a law does not suit they profit they won't pass it, and that includes bitcoin and cryptocurrency because if they take over who is ever gone use the banks anymore and they will all run out of business.

Well you mentioned it already, OP anyway. They're avoiding the possibilities that those things would happen. Here in my country, KYC is strict to some custodial wallets involving crypto because they're aware that such transactions aren't traceable in cases of money laundering, which is ironically even happening outside crypto.

Bitcoin is being your own bank. It's absurd to make an assumption that Bitcoin stole something in the bank.

why other countries don't accept bitcoin,? actually it is their right, but if a country says bitcoin is illegal, of course we will not accept it, because bitcoin has never stolen money from banks, and bitcoin has never harmed any country, if a country does not accept bitcoin for reasons of wasting energy, even that doesn't make sense, the proof is that there are still many other companies that cause waste of energy and damage the environment, but instead are supported by the government, if I personally think the reason they reject bitcoin is because they can't control bitcoin..