Consumers demand drugs because they like the way it makes them feel, and they derive utility from that. In a country where Bitcoin is banned, a consumer derive

Consumers demand drugs because they like the way it makes them feel, and they derive utility from that. In a country where Bitcoin is banned, a consumer derives almost no utility from Bitcoin because they can no longer immediately exchange it for fiat currency or goods unless they leave their country. Thus the demand for bitcoin falls, and if less people use it, it becomes less valuable (network effects). That directly hurts its value in the long run. If you were to imagine a world where Bitcoin is banned by all governments, then no one would desire to own it or trade it, and it has virtually no value.