That is not the reason. They aren't investing in bitcoin because they are afraid of "new kind of  money" like you stated. They aren't because they don't know what bitcoin and crypto currencies are. They aren't aware how it works. They aren't interested in crypto currencies. Or they just think it is some sort of scam because of all the negative media and press that spreads around. In other words, lack of awareness. And I am sure most of them don't because they don't have money lying around to invest in something very volatile as crypto currencies.

We all would have wanted to join this forum earlier but sadly, we can't go back to those days and can only live our days trying to have more bitcoins. But if you have decided to invest in bitcoin, you should know the risks and learn to reduce them from getting bigger. Don't be afraid like people out there because every investment has risks and depends on how much we can understand and reduce the risks. By continuing to learn from time to time, our understanding will increase, which can help us make a future profit.

Yeah, some people tend to believe in other people or entities compared to their own self or instinct. Even without doing first their own research, they immediately believe without verifying.
Another thing is social media, there are a lot of influencers there that spread FUD sometimes or fall for some traps about scams or Ponzi, these are also one of the many reasons.

There's no point of of trying to find a psychological explanation of why the people are afraid of Bitcoin.
The vast majority of the people simply hate taking risks and that's perfectly fine. Investing is inevitably related with taking risks.
There are two big reasons why the people are afraid of Bitcoin/crypto:
1.Price volatility and constant FUD creates the fear of Bitcoin price crashing down to 1K USD or below.
2.The countless amount of Bitcoin/crypto scams. No wonder why many people don't want to use BTC/altcoins. If I was a complete newbie in the world of crypto, I would be afraid to put my hard earned money in crypto as well.
Joining this forum isn't something that you should be afraid of.

The sooner you get rid of that garbage victim mentality the better. That mentality is promoted a lot by socialist-leaning politicians offering you the supposed solution that they are going to save you. Garbage. You have to take charge of your own destiny.

As for Bitcoin, apply this. If you haven't started investing, start now, but first get a lot of information about what it is and decide why you want to invest. If you do not have much experience it is better to invest for the long term, at least 4 or 5 years and do DCA, which means that you buy as much as you can weekly or monthly. How much can you afford? $50 a month? Then go for it.

People are always afraid of taking risky decisions. Especially when they could lose their hard earned money if things go bad. This is a natural human reaction and there is nothing surprising about that fact.

This fear can easily be remedied by simply learning more about the risky thing. Knowledge sets you free from fear.

In the case of Bitcoin, it's not that easy to learn everything about it, especially if you do not have the technical background
. Most people invest in the hype while staying in the dark about why Bitcoin is so great. Hence their fears do not go away and they act on those fears and lose money.

You are afraid because you don't know anything about it and you are coward to go out on your comfort zone that's why you feel that crypto or bitcoin is so shady. But if you are been educated about the technology of bitcoin and accept the positive information came to you for sure thus fear will be replaced by eagerness to invest and try to use or avail the huge potential of this coin.

I think it's okay to be afraid of what you don't understand. Until a person understands and has studied Bitcoin, let him be afraid. And he will be right. So he will be able to secure his fiat money, which many of us do not fly from the sky. You need to enter the cryptocurrency with careful steps, without rushing. Stepping from one topic to another, we begin to understand and decide for ourselves whether we need to invest or not. Many on the forum teach beginners to buy Bitcoin and hold. But I witnessed how a person was helped to buy and then, deciding that he would soon increase his finances, the person calmed down and began to wait. At the same time, he doesn't know how to store what he owns. In the end, he just got scammed. He saw his account but did not own it. Therefore, haste always puts obstacles on us. Just rely only on yourself. Do not know or do not understand; bring your knowledge to the point where you understand. You don't need to trust anyone.

Its high volatility scares people away but it is also that volatility that attracts so many people to bitcoin. I think the main reason people are afraid to invest in bitcoin is none other than the government, the government is still the highest voice of a country and they govern us. Everyone believes what the government says, as long as the government spreads bad news for bitcoin, people will be wary of bitcoin.
Nowadays with the development of social networks, the truth is spread everywhere so they will not be able to stop bitcoin forever, at some point they will have to admit that they have failed in trying to stop bitcoin.

Before we became experienced in Bitcoin, we were afraid in the first place on what would happen to our money if we buy BTC. It’s because we have lack of education in managing our risks. It’s really normal for us to have this kind of experience in the first place. I can relate to all since the day I was introduced into Bitcoin.

Education is the key for us to minimize our worries in buying Bitcoin at least. But it’s better for us first to learn proper financial risk management before we decide to buy any asset like Bitcoin as it has no promises or astronomical guaranteed returns.