It's neither good nor bad as long as any country itself decides to get out of bitcoin, by doing so they are only depriving themselves of the most powerful and innovative technology and of something which is going to get stronger and more useful and more popular in the future. China's decision, though not confirmed yet that are going to completely get out of bitcoin, is their own and it's going to be their own loss not anybody else's. I personally think that if almost all the countries become bitcoin friendly and recognize it then it's going to do more good to bitcoin than harm.
Bitcoin can be a big help to the citizens of any country since it brings freedom but for governments bitcoin is nothing but trouble, they can track it but it is a pain, they cannot completely regulate it because they do not have control over it, people can avoid taxes with it and all other things that can be done in bitcoin thanks to its decentralized nature.
And this might be only a tip of the iceberg
Cryptocurrencies themselves are likely only the first step (and not necessarily a very successful one in the long run). It is more about the blockchain technology itself that governments should be afraid of. This is not to say that they shouldn't be afraid of Bitcoin and other cryptocurrencies, but the blockchain could turn out even more dangerous to their power monopoly and hegemony. After all, the blockchain allows people to express their votes directly in a decentralized fashion in a trustless environment, i.e. without some central authority controlling the people's choices and doctoring their votes as it sees appropriate