I don't see any reason for governments to illegalize Bitcoin.
It doesn't break any laws.
"Bitcoin is just an alternative economy and ideally people should be able to exchange goods in alternative economy if they so choose."
So governments should leave Bitcoin alone.
There are so many benefits of bitcoin to the government which they know also, but some of them just chose to reject the truth because they know it would eliminate the level of corruption in their financial system, and also give power more to the citizens than them, and they try everything possible just to fight the implementation of the bitcoin scheme.
Most of the government that likes to be transparent with their citizens has surely seen it as benefits to their government and they have started to regulate the system to the cryptocurrency to align with their own rule of operation, and what I expected some of these big countries to do is to follow example since they cannot lay down example for some of these smaller ones that have accepted bitcoin.