China have done that already.....

I think it is inevitable fact, very soon major governments will have their own “cryptocurrency” simply due to its inherit utilitarian and security purposes.

People can easily exchange it without boarders plus that it cannot be double spent (anti-counterfeits)  They can monitor it and freeze if necessary. Forex will exchange government backed cryptos in addition to traditional fiats. 

We have to accept it that it is the future of currency and certainly governments will adopt or face being the dinosaur.

What interesting though or rather the question should be is what is gonna happen to bitcoin if that happens? For me I will choose the answer that it can be good for bitcoin, because by then people can easily buy bitcoin using government cryptos (no need for lengthy bank transfer or expensive credit card fees) and by then bitcoin will evolve to full blown digital gold and not as digital currency. Price will stabilize to an ever increasing up trend until it reaches its maximum supply. People will still speculate, manipulate, hedge like what it is now but the general trend is nothing but up because of its finite supply. This is bitcoin advantage over physical gold (gold seems to have an infinite supply).

I think we are going into this direction because government can get both worlds in doing so (taking the advantage of new technology while at the same time maintaining its control over its people).

To predict what the government will do, let us assume that we are the government and lets state what are we going to do. If I am the government I will do this:

1.   Ban bitcoin use as form of currency (medium of daily exchange); this is stablishing economic control
2.   Introduce government backed crypto currency (centralized); harnessing good benefit of the technology
3.   Introduce centralized wallet (aka Banks, ownership is verified); control over people
4.   Allow its exchange in forex and crypto-exchanges; freedom to its people
5.   Allow people to own bitcoin as form digital gold (not as currency) ; freedom to its people

In this sense I think bitcoin will prevail and here to stay……

Because of these bitcoin vs gold arguments, there are people now who combined the two together.
Will it going to work? I depends on who and how, plus only time can tell.....

Everybody or most people here believes that its gonna bounce back up again, in which I agree by the fact how btc is rigged and how the economy fundamentals comes into play. But the real question here is, how long will it take this time to recover? Are you prepared to sustain long bearish market? Study BTC all year price chart coupled that with recent events in China, you should roughly be able to predict how long it gonna be able to recover this time.
Your prediction should be even more accurate when Chinese government reveals what really their plan is. Right now I would say that we should monitor first what going on in China and better remove faith out of the equation.
I have my own research and study and I suggest you do your own and don't just listen to fortune tellers here.    

when everything else goes constant, my conservative price prediction is this...



this is just by ratio and proportioning no technicalities involved.....

by 2023 to 2031 price may go up to 17k USD per BTC, but if that didn't happen, bullish growth may actually happen from 2032 to 2038 to hit just about 25,000k USD per BTC. Again this is just a guesstimate when everything else remains constant.  

I am still trying to figure out ambitious estimate like 100k to 500k per BTC....
 
 

I'm just thinking now the possibility of government issued crypto currency (maybe blockchain technology) and the miners are the banks only, this way government is not putting banks out of business and there can still be central bank who controls all the banks and issue order if needed more money in the economy (if Etherium based which I think the preferred type of all governments).

This can even go in parallel with government existing fiats so people can have two choices (good publicity for the government).

But the question still remains the same, if ever government wants to push on this, "how can they know who owns what?" If this can be solved I think government will definitely step into the world of crypto currencies....

Any comment/reaction/argument on this?

   

It maybe the last thing a government want, ever since the ancient kings who rules the world control the flow of money to control its people and it never changed up to now. Today if a government adopt blockchain technology to create their own cryptocurrency they are practically letting loose control of money and therefore the people for sure they dont like that to happen right? So if they create one for sure it will be like another fiat or digital fiat. One obvious reason they wouldn't fully adopt blockchain technology is that it will kill the whole banking industry of the country.
There is a news that China is going to start their own cryptocurrency (link below) but I think they don't know yet how it can be done, no details in the news.
But for the sake of argument, let say many countries developed their own derivatives of Bitcoin, for sure their crypto will be pegged to Bitcoin (like the USD of all fiats) and if that happens Bitcoin will still rule....

https://coinidol.com/china-creates-its-own-cryptocurrency/