I don't think it's an all out war between government and cryptocurrencies at all. There's a lot of things that will hinder the government from stopping the usage of cryptocurrencies.

1. Cryptocurrencies are electronic assets. They are intangible assets.
2. Cryptocurrencies are decentralized. The government will have a hard time tracing who are holding such cryptos.
3. Cryptocurrencies are already widely used. There are already companies that include cryptocurrencies in their businesses. Even famous people supports some cryptocurrencies.

Also, how would BANNING works in the world of cryptocurrencies? I think, that's harder that we thought it would be.

The only thing the government can do for now is to create bodies or regulatory that will regulate the use of cryptocurrencies. The biggest reason that I can see about these chaos of govenrments against the cryptos is TAXATION. Banks lost a lot of money (just my opinion) because more people prefer investing their money in cryptos than in banks. Who even wants to invest their money for a year, and just get an interest of 5%? LOL