I love this answer, this is true one of the main reason. Chinese don't deposit their money(big amount) in bank, they're going for crypto investments instead.

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If you read macadonian comment, I think it's one of the main reason don't you think so?

[moderator's note: consecutive posts merged]

This is misconceptions,
China doesn't ban Bitcoin (holding, trading, etc) but they only ban Bitcoin mining, just like another misconceptions China's can control Bitcoin since they has over 51% Bitcoin hash rate.

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In addition from other users mentioned above, another reason is :
1. Volatility, many people scared of volatility and prefer to hold Fiat even though Fiat always inflate, but it's more safe in price term.
2. Not tech savvy, most of people doesn't want to learn tech because it's hard to understand especially for old ages.
3. No physical appearance, they no have any idea what those number came from and just thinking it's only a random number that could be faked.

The term ban Bitcoin is just temporary, sooner or later we will see another countries will legalizing Bitcoin as legal tender and it makes other countries follow it especially the countries was successful after legalizing Bitcoin,

For the one reason, because all governments want revenue from their people and Bitcoin involve money that is considered taxable but in fact, people can hide their asset through Bitcoin and since it has a decentralized nature, they can't force their people to pay tax.  So now, banning Bitcoin is a fool decision by the government, how they can ban valuable numbers that only can be found in computers running with different nodes and holding by different people anonymously or pseudonymously, IIRC
 
Another factor is we know from the start government fighting with different fraudulent activities and since Bitcoin is prone to this activity, they want to manipulate their people or else prohibit them to use cryptocurrencies including Bitcoin.

The Sharia LAW of Muslim countries I guess. This had been discussed in the forum for a while I see no reason for the Bitcoin ban this time since it's been regulated already. China use to ban Bitcoin but it had changed now.

Most countries will just follow what US is doing so if US isn't banning BTC, it's likely not going to be banned also to most countries.

They want to retain and monopoly to their own paper money. They don't want people prefer any decentralized currency over their paper money. They blames that Bitcoin is evil for a single reason, they say that Bitcoin is a tool for money laundering. But I am amazed that the lion's share of money laundering and bank robberies in the history of the world has been due to banks. In fact, they want to manipulate the economy, they want the rich will die as rich, and the poor will live like poor forever. They do not like decentralized systems and principles of justice for everyone.

Why is it illegal? It is not illegal in most countries and it tends to be authoritarian countries where it has been banned. These kind of governments want full control of their citizens in order to exert pressure, if people within these countries have the ability to hold cash outside of the control of government then they are less vulnerable to manipulation and sometimes even officials have been known to hold cryptocurrency as a way to move currency overseas. There are very few situations where it is "for earning & living", it is mostly used as a currency for moving cash around without banks, a tiny almost insignificant amount of people are currently paid in the form of Bitcoin for their salary, so that is a moot point.

Which government do you mean exactly? If you are talking about China you will need to read more about how communism works and don't expect more from China as communism. However, since bitcoin is providing anyone anonymous accounts and people can have borderless transactions without any third paty included in the transaction, that's completely normal to see the governments and some related organizations are against it but since they see the demand and popularity of bitcoin between people, they usually will not act against it or better to say they can not complete ban it.

Because it's simply doesn't have to go through any government owned or produced medium of exchange.

That's why there are governments that are against to it and they don't like bitcoin that much because it's decentralized and against to the likes of the governments.

I think that the main reasons can be listed like this:

- High volatility
- Being afraid of it thinking that Bitcoin would harm the economy

Some governments still don't want to accept Bitcoin or they even want to ban it because of its being highly volatile. They are warning their citizens about this situation many times and they don't want them to lose their money easily. It is good that they think about their people but there is no meaning in banning Bitcoin. Because Bitcoin exists with the aim of giving people the freedom of using itself freely. If governments continue to ban it, Bitcoin will not be able to fulfill its goal. They should just let people do whatever they want by monitoring the situation also.