if this happens, then the level of trust in fiat will decrease and many people will avoid taxes with bitcoin in each case, especially payments.
inflation will be far greater than expected. Subjectivity refers to the same direction of economic media and actually this would be very good if regulations had been implemented, but its popularity would not be as big as before the regulation.
Just because you're earning Bitcoin doesn't mean you will not pay taxes. Taxes run the government, the government provides services, and the services help the economy, economy provides the needs of people, then the people pays the taxes.
Well, the thing is, governments only provide permits to companies that regulate cryptocurrency. And those companies pay taxes as a mean of "business".
so also the users will be benefited by bitcoin and the government too
The only ones who get benefits are the users, as it is an asset and not a business.
if bitcoin can be used throughout the world it will create a balance of the business world, because there will be no more inflation and no currency that always controls the other currencies. the business world will be truly stable and people will be greatly facilitated if they want to sell goods between countries.
Inflation is part of the Economic "stability". Currencies that controls other currency are just probably the means of saying that they're more powerful "Economically" than the other party.