The reason why Bitcoin is not accepted by the government is first of all because Bitcoin is not under the supervision of the government, the government cannot do things as it pleases, the government cannot ban Bitcoin, and Bitcoin will not be killed.
The government of any country would dream of having a “loyal” and controlled populace and would put in place policies and laws that would aim to do just that. The government of any country would love to have the finances and the cash flow of its citizens in check and somewhat controlled.
Bitcoin has come to out an end to all that and that’s why most governments of various countries perceives bitcoin as a threat to the control they enjoy with the fiat system of payment.
Bitcoin cannot be killed but the government could very well dole out policies that could harm the usage of bitcoin and that includes a ban on all transactions.