The bitcoin as a crypto currency is still very young and has not been noticed by all countries so it just need some time until it gets legalized by the country.
Yes you have a point. I think government will legalize bitcoin if they tested and proven the ability of bitcoin in helping the economy. If they also understand why bitcoin exist in our world.
But you think many people will be happy about this legitimacy or they will become disgusted and do not want to continue investing in crypto, I am very confident that people will follow the second option because I read a lot of comments on tax issues in crypto and bitcoin. And many investors, traders feel dissatisfied, although legalization is a good development path and a guarantee for crypto but they have no reason to share their interests with the government, they are having a freedom and feel comfortable in finance, they do not want to be interrupted by the government