Well, they can buy down 21 million BTC and keep all of them to themselves, essentially 'killing' Bitcoin.

On a serious note, no, I feel that it is difficult for them to do so. Even if countries like China tries to ban Bitcoin in their own country, they cant exactly do so to the whole world, and there will always be a use for Bitcoin somewhere else.
Bitcoin is still gaining popularity, and its community is growing, so unless all the governments team up and say NO to BTC, it would not happen (I hope).
Citizens > Government, and we need to believe this as well.
Yes bitcoin will never die so the altcoins. There will be big event in this month which G 20 will have some conference about cryptocurrency in argentina. I hope it would not make cryptocurrency even worse than now.