What do you think?
Just imagine Uganda decided to invest part of its managed pension funds or whatever in bitcoin. THE FIRST COUNTRY THAT INVESTS IN BITCOIN! What do you think how people would react, once that goes public?
--> Huge media attention (at least in the financial press)
--> Massive inflow of funds (from Malawi and speculators)
--> massive rally based on this influx and exaggerated expectations
--> big crash once the demand is exhausted
--> normalisation, followed by future Bubbles when other major investors follow or anything happens, that makes Bitcoin appear more valuable in the future
So before any governments involvement in the whole story remains unknown all whats visible is only the influx of funds, that would trigger a rally already. As soon as the story behind it becomes known, that is multiplied by all the expectations people have and imagine others having even larger expectations.
The smartest thing to do for any such investor would be to buy up funds slowly and steadily for cheap and then once his/her involvement becomes known, on the peak of the resulting bubble, sell everything to buy again after the collapse. The nature of such investors, like investment funds, etc. may contradict such actions however, as they may stay for the longhaul once they decide to invest, not shure on that.
I always thought such a monster bubble would be a great incentive for corrupt leaders of third world countries to announce adoption of bitcoin on theirs. That way the could just pocket the huge returns while bitcoin may still pose a useful alternative to common tender in their countries.
And now for something completely different:
