Nice first post. This is a well thought out anti-bitcoin argument. I am inclined to believe that this 'middle scenario' you mention where governments slowly fail and consequently bitcoin other crypto currencies gain market share and momentum is the most likely scenario. Bitcoin has a ton of momentum and as time wears on it will only get harder to do dislodge. I think the cat is out of the bag to a large degree. The concept of decentralized systems-once fully understood by the masses- will be too attractive to ignore. The projects being built on Ethereum-including this site for example-are just flat out jaw dropping and I am just hoping that governments embrace it and move forward rather than engage in a futile efforts to squash progress. We will see.