I think the government cannot stop us from using Bitcoin completely. However, they can track transactions that convert Bitcoin to real money or use it to buy and sell goods. From there, they can catch us if they want. So, always be careful with conversion transactions, it will turn you into a criminal sometime
No, not necessarily. If you will follow the intended use of Bitcoin according to its design, which is through peer-to-peer transactions, you will not worry about government tracking you down. If you buy goods through Bitcoin on a peer-to-peer basis, you are also relatively safe from government trackers. And if necessity calls that you really have to convert your BTC into fiat (Bitcoin is more real money than fiat) and you opt to have it on a peer-to-peer level as well, you are also safe from government trackers. What I mean to say is that Bitcoin can get away from the prying eyes of the government. Bitcoin can't be banned, therefore.