That's correct. A country can call itself as democratic one, but we all know that the government is usually follow the interests of the elite and if they will count crypto currencies as something dangerous or not religious (just like some Turkish imam said few days ago) - bitcoin is going to be banned. I think bitcoin can die for a concrete country only, but not for the whole world, no way. There always will be bitcoin welcome country which understands all the advantages of crypto currencies.
Japan, South Korea and Canada are the ones off the top of my head.
I really wish most of these countries would focus on
legalize bitcoin rather than regulate it, but I think that's too much to ask.
You seriously want to the state to regulate bitcoin? I think it will be the end of bitcoin. Think about it. Bitcoin became popular because it offers people freedom. States can't regulate financial flows. They can only steal money from people and profit at our expense. I am against any form of state intervention in bitcoin.