I think the main factor of the government that helps the development of bitcoin is that currently it is not so badly prohibited from using it, even though it is not a means of payment. at least bitcoin is in the market, which is parallel to stocks, even many investors leave stocks to switch to crypto currency
That is a factor however if we begin to think this and we imagine the opposite scenario, what would happened if they actually made bitcoin illegal? Will this stop people from using it? I doubt it, the price will go down for sure and many people will lose money and get scared but bitcoin as a concept will still be alive and well and if anything it will become more of a currency as people will use it to exchange products and services instead of being an asset which people trade which is its more popular use today.