Can bitcoin take Fiat's place in time? Suppose it does? Can govetment step in and stop this program?
Its not possible to do , bitcoin is decentralized and no one can stop the transaction or a specific address from functioning. We switched from cash to credit cards and I think Its safe to say that cryptocurrencies will takeover in the future but probably governments will create their own digital currencies that are under their control.
BTC is decentralized because of that the transaction is peer to peer from one PC to another Pc and its readily be transferred to any one with direct transaction without third party or service provider to transfer your money with enormous charges. And it has no boundary you can send it around the world. I don't know if the government has the capability to trace the flow of BTC transaction in the internet specially that everyone is anonymous.