Bitcoin is not made to apply taxes on it - BTC economic model is different
Bitcoin is not made to apply taxes on it as Bitcoins Economic model is different. If governments want to earn money through cryptocurrency, they must invest in it. It is upto governments to buy Crypto using their reserves and hold it instead of applying taxes as taxes cannot help much since there are privacy USDs.
They are not taxing bitcoin itself. They are taxing your capital gains which is in USD. Do you pay taxes in gold or stocks? No, you pay the USD. That's what they want. The government don't have to buy crypto, that doesn't make any sense. They don't care what you buy but it you are making profits, you'll have to pay your taxes.