I actually don't see the government thing as an "ultimate" hurdle.
The only way to kill Bitcoin is if all governments ban Bitcoin, and I really don't see that happening.
Heck even in the U.S. things can be jumbled up.
If one state decided to adopt Bitcoin, the U.S. government wouldn't be able to prevent that state from using BTC (violation of the 10th Amendment). Sure the financial and regulatory issues would be convoluted, but from an overarching perspective the state could still allow people to transact in it, as long the state transacts with the federal government in USD.
good point.. It will never die completely
however for bitcoin to mean something in the future,
I think everything stands on what the US does...
If the US takes a positive stand on BTC
western euro countries, I think are likely to follow
in Belgium and the Netherlands, Finland and Norway, there are some positive voices already ( along with negative warnings )
but no decisions are being made... and few politicians understand BTC
once USA and western euro countries embraced BTC, ( not regulating it to death )
BTC will take off