At some point bitcoin reaches a point where one doesn't need to be exchanged for fiat, people just exchange in bitcoin which makes anonymity even more important. But also easier since you don't need a centralized exchange.
this is what people like us want, but it means it replaces existing currency and to do this requires government approval. i think that will never happen, the government will never let bitcoin become a currency for people to freely use
I wouldn't worry about governments increasing their regulatory efforts against Bitcoin as long as it remains decentralized. Just my opinion

bitcoin will forever be decentralized but government regulations will create difficulties for us. decentralized exchanges or mixers are also created by people or an organization, everything is under the control of the government, they can also control like the government did with Tornado Cash, they can arrest the head, shut down the website...that's what i'm afraid of