We can't underestimate the government just like that. They can do anything for earn very high profit for them.
Yes they can, one way of them doing that is tax-ting everything in the country no matter how rich nor how poor you are , everyone is treated with equality in this tax-ting case
If the creator(s) of bitcoin won't cooperate with government and make them feel be annoyed
Satoshi whereabout is unknown , there has been a lot of speculation that X or Y may be satoshi in disguise but unfortunately his whereabout will be kept secret though
they can block all of bitcoin website
There is a lot of way to by pass this type of block though. If the chinese could still use facebook and most of the
BTC website than I dont see a fear of this thing if the government will do this sort of things in the future , which is highly unlikely .
even shut down our internet access.
Not going to happen because basically the goverment got profit from this stuff as well, shutting the internet access down would create alot of havoc throughout their country and of course worst case will be that they will turn themselves into the next north korean dictator, which is highly unlikely as well
tl;dr : government possess no threat to
BTC but
BTC do posses a threat to them