The United States has one of the best approaches as how to treat Bitcoin from a tax perspective. The government simply views the coins as property and you pay a capital gains tax (unless you live in Puerto Rico) when you sell them. You can still get jail time if you sell them in bulk as an unregulated money exchanger but most people wouldn't fall into that category.
More countries should take this simplistic view on how to tax/regulate Bitcoin and stop thinking of it as a currency.
What is that? I think that considering bitcoin as an asset and starting to apply taxes to the owner is indeed a very good choice for a country, but in reality the owners don't want it, because basically bitcoin is money, so it must be used as a payment tool rather than storing media, if only categorized as assets, the function of bitcoin as a currency will disappear, and the era of the currency revolution will stop, and the world will remain controlled by the dollar as an international currency, and this is a monopoly currency system.More countries should take this simplistic view on how to tax/regulate Bitcoin and stop thinking of it as a currency.
On the other side, its function as a currency as ningrumxxi said will disappear, so as the revolution, but I highly doubt that it can be different on any other way. As you said, current monopoly currency system will remain for now, developers and creators of it are so strong and surely are not willing to let it go.