If Government and Bitcoin will combined economy will increase. If government support and protect bitcoin then banks will accepting bitcoin. And bitcoin is going to education too.
But if all that happen I didn't know if economy will increase. Who will work to government if bitcoin has higher value than country money. Maybe government will against bitcoin someday.
Yes I'll also agree with that, bitcoin is a decentralised currency but the currency circulated by the governament is a centralised money, so there is a considerable difference between both the currencies. If Government and the bitcoin ties up then the economy undoubtedly increases.
The government will ensure that they will also benefit with bitcoin, although it's decentralized but they will find a way to regulate it and enforce those users to comply with the law, especially on paying the right tax for their transactions and income online. I know bitcoin is still young but with the resources of the government, they can find a way to make it happen, this decentralized thing will become limit as we will not be able to enjoy full freedom in using bitcoin.
But that is the thing, they are going to try to benefit from bitcoin but that does not mean they are going to get it, that is why they fear bitcoin, they cannot control it and as such they cannot threaten you the same way they can do with their fiat, they cannot take your bitcoin without your permission if they do not have access to your private keys or your seed words.