The problem with the government is that they are trying to control all aspects of the life of the population of the country. They want to monitor our every purchase, every payment, that everything is available to them, that every dollar is taxed. But no one likes to live under surveillance, if a law-abiding person works and pays taxes, then he does not need such control. Governments are not perfect, you are right, they are made up of people who can make mistakes.
It is natural for governments to want to get as much control as only possible, and they will try to get it any time. So civil society should resist these intentions where control starts to seem unjustified.The balance of a government and a civil society makes everything in the country works well.
Bitcoin is an answer from the civil society to governments intentions to over control financial flows including money in private purses. We want to keep control over our money.