Bitcoin isn’t untraceable.
But there are cryptoassets that are (e.g. Monero), for all practical purposes.
The utility of bitcoin, Ethereum, and other major, liquid cryptoassets is that they are non-permissioned and uncensorable.
The government can freeze your bank accounts and credit cards, but it can’t freeze your crypto wallet. And that’s why the statists want it to fail.
I do not know enough about crypto to argue the issue.
However, if the government can't find your crypto wallet, how do merchants and landlords know where to find it, and how do your employer or your customers pay into it?