Very risky investment. They lost 1.3m due to a hacker incident, not to mention the words "virtual" and "money" don't mix well. I'd see many drug cartels using bitcoin to their advantage, but nothing seems to be amusing about it besides illegal trading.
yeah it is very risky which is why you should never invest more than you can afford to lose.
when you say "they" I assume you mean inputs.io the online wallet company. yes they did get hacked. bitcoin was designed to take third parties like banks out of the equation. basically you are your own bank. so although online wallets may be convenient they certainly aren't the safest way to store bitcoin. Also inputs.io must have been a small company with shitty security because I hadn't even heard of them before the hacking.
yes bitcoin can be used for illegal activities, just like every other currency in history
basically what companies like paypal and western union make billions a year to do, bitcoin does better essentially for free, its a store of value, and can connect the billions of people without traditional banking to the global economy