This is basically it right here:
[XT Supporters] believe that Bitcoin should be able to handle all the transactions on planet earth, from everyones daily coffee purchase, to everyones house purchase, to how Google cars should be paid for their services. On the other hand, you have those who believe Bitcoins core value is the fact that it is a hedge against fiat currencies, and by extension, governments (in the case they decide to infringe upon your liberties). Bitcoin CANNOT be both. Its just not possible.
The above is the real argument, everything else is FUD and just craziness.
Do we want it to handle all world daily transactions,
or do we want protection from current monetary systems and government involvement?
It is absolutely possible. Impossible is a very bold word. Solving the byzantine generals problem was once considered impossible btw.
I'm no expert, I'm far from it. I'm actually a noob.
But how could it reasonably be possible to be both?
The more mainstream it gets, in theory, it should be easier for the governments to exert control over it.
The only reason Bitcoin/bitcoin has survived is, I believe, governments can't actually control a decentralized system.
Who owns it? Who runs it? Where is it maintained?
Because of that, governments have left it alone. Legally, it is hard to control.
So, if it did get gigantic (say 200 million users each with 3-4 daily txs each) how can it also remain immune to gov control?
How can we have our cake and eat it too?