What we do with bitcoin will not depend on other people and it is also not related to other people because we need to be responsible for our funds. Other people can not interfere with our decision about when we use bitcoin, we can use it secretly without anyone knowing.
Those who use bitcoin will know why they need bitcoin and we have our reason for that. Let the government do anything with their fiat while preparing ourselves for a better future.
Honestly I did not see bitcoin as a passive income thing so far, only saw it as a "future wealth maker" and I can even see it as a passive income thing nowadays, more of defi world and more chains all come down to making a passive income, or play to earns which is not passive but at least you play a game.
This is me after 8-9 years in crypto, I still find out how crypto could help me and my life to be better, after so many years. Obviously the most important part of crypto world is to have money to spend, we have so many people who have no idea how to make money from it because they have zero and it is understandable since some of us come from poor nations, but it is still a lot better than any other investment.
Hopefully, I will reach to a level where I make thousands per month without doing much work (maybe few hours every day) in the future. This is not just about governments or anything else, it is about how we can get financial freedom and nothing in fiat world gives us that. Government results with our investments becoming nothing, I can save 100k in 10 years and from the day I started to the day I ended the value of that 100k will go to shit, whereas crypto doesn't do that.