Bad news probably for mainstream market adoption, but I don't agree that negative legislation necessarily removes incentives to buy bitcoins/drives the Bitcoin value down. Black market status has increased the price/value of certain goods, such as drugs.
Especially in countries with highly inflatonary currencies, or countries with strong currency controls, the black market demand for Bitcoin could be huge.
My understanding is that drugs are expensive mostly because of the risks involved in drug trafficking. I doubt you'll see the same kind of risk premiums in a bitcoin market.
Especially in countries with highly inflatonary currencies, or countries with strong currency controls, the black market demand for Bitcoin could be huge.