It is of no doubt s that these critics are used to the old fashion system of centralization and adaptation is far reachable in their niche of life. I don't normally blame them because they do not understand the significance of decentralization in the application of their financial lives. There is still more work to be done pertaining to the Bitcoin and cryptocurrencies awareness creation.
I wouldn't call it the downfall of Bitcoin. Instead, I would say that this is just one of the barriers Bitcoin and other Coins have to overcome since there is bound to be resistance against new technologies. For example, when computers were first released, people were resistant to this new form of technology since it caused to change in lifestyle. But now, computers have changed the world as we know it! This happens time and time again but I feel as though, no matter what the Government does, crypto currencies will survive one way or another.
Hope this reply answered your questions