I disagree with your premise that flaws will cost investors "billions".

The bitcoins aren't going to disappear, and in order for governments (really the people behind them) to want to have them they have a vested interest in making sure they have value.

You are missing the point that the only reason governments would want bitcoin is because it has value. No value = no interest from the government.

If your argument is that some investors will lose a lot of money, then congratulations you've described just about every investment instrument that there is.

Some will lose a lot, others will gain a lot.  This isn't anything new.