OK. Let's say - which will be the most possible event - that Bitcoin Core Devs will raise the blocksize some day in the future, because a majority wants a higher transaction rate and now (as you stated) Bitcoin will lose its gold properties and will not become Nash's Alternative Currency (the one which will force governments to create Nash's Ideal Money). What will happen? Bitcoin will die? So what??? It was not worth it then. Another ecoin will talke its place and keep the blocksize of 1 MB forever.

I say, Bitcoin (with bigger blocks) will still be the number one decentralized currency backed by math and cryptography and most likely will stay on top of all altcoins forever. Side chains will make small transactions faster and cheaper and Bitcoin will act just like gold and money together. Something that even Nash couldn't foresee (or calculate).

Also as I stated before I am pretty sure, that no government of the world in the near future will be able to create a currency that can compete against a decentralized currency, like Bitcoin, because it will not be decentralized when a government would create it. Government is about control and decentralization is not good to control. When the code is in the wild there is nothing you can do...