My biggest fear is the government issue an executive order to force all citizen to give their all of their Bitcoin, just like
Executive Order 6102 that talks about gold.I also scared if there would be a time almost all of Bitcoin (let's say 99%) are hoarded by centralized exchanges and institutions, then they will force people to use their own exchange and wallet because they hold the real coins, only distribute the fake Bitcoin like ETFs or off chain version.
It can happen to Gold, but not with Bitcoin.
I mean you can't store Gold in a non-custodial wallet, right? You can store your Bitcoin on a non-custodial wallet and I'm thinking how they can have access to something that they don't have control at first place. IMO, a government forcing their people to give their Bitcoins to them is almost close to impossible. If they will ask me, I'll just say I don't have any, and they can't force me as well. I have the control at the end of the day.
As for the CEX hoarding the Bitcoins, I don't think that this will also happen as well. Just for context, there was a time where the total Bitcoins stored on all exchanges is decreasing on a daily basis because investors are storing it on their own wallet. I just don't know if this is still the case now but realistically speaking, I believe they can't hoard 99% of the total amount of Bitcoins in circulation.