Things like Bitpetite and other cryptocurrency ponzi is the one making digital currencies and Bitcoin having a bad rap to most mainstream people.
First of, it's an intangible money. One that only appears in your computer in bytes. It's hard enough to sell that to people.
Second, the complexity of understanding the technology makes everyone stay away from it. I don't know if there's already a phobia called for digital currency and its technology but I'm sure there's a lot of people that are suffering from it. Could you suggest one? Cryptophobia? bytephobia? Satoshiphobia? Goxiphobia? coiniphobia? I'm not sure but maybe we can create one. Even just from choosing the wallet. How freaking hard it is to choose a wallet in normal life, right? But wallet for digital currency is total different.
Third, creators, manipulators, and those who have no moral compass but to siphon money in a scamming way to other people. THIS will get uglier if it continues. If the ponzi scheme gets worst, government will intervene and that will be a greater problem. And really, majority of people will just stay away from it and curse and shut digital currency for the rest of their lives. There!
P.S. Photo is not mine. Grabbed from Google.