We are living in different world and crypto world is a different world and we cannot merge the real world and the crypto world. Try to think of it, in the real world we have the government which make it centralized but in crypto no government at all and we have all the freedom to do with our bitcoin.
Well isn't the cryptoworld created by the people in the real world? Supposedly there is no difference because of the links between the cryptoworld and real world but the government made it hard for bitcoin to be totally used and show bitcoin potential in the real world. Well we can't blame them, they want it all controlled and bitcoin is hard to control.
Never heard that the government is controlling bitcoins.
It's 100% decentralized so how are they doing it? I don't think this is true at all. If you talk to your friend about bitcoins, will the government go to your house and arrest you? No. You're free in this world. You can do whatever you want in bitcoins. You can advertise and promote it as long as you want. The government isn't holding you back. They don't have a law against bitcoin.
They don't need to control Bitcoin directly. Given that 90% (or even more than that) of all miners reside in China, and miners are the ones who come the closest to whoever might gain control over Bitcoin, the Chinese government has all the necessary tools to control miners, and through them control Bitcoin. Obviously, they can't do it openly since that would cast a shadow on Bitcoin itself while killing it (or trying to kill) would mean losing any control over it altogether. Besides, the level of control they might exert is rather limited per se due to the robust nature of Bitcoin. Moreover, they most likely don't want to control Bitcoin in the way the majority of Bitcoin users think they would...
But this doesn't in the least mean that they don't have an agenda