In 2019, I was fascinated by Bitcoin after I was introduced to it. I have been following the attitude of governments towards bitcoin and hope it will be promoted. However there has been too much negative news in the past two years. I reacquaint myself with bitcoin and fiat money.
Money is a tool for exchanging goods and services in human social life, and whichever tool makes it into the system becomes the de facto currency. Governments regulate the economy by issuing money, which means they can control it. Bitcoin, on the other hand, cannot be controlled, which is why we like it, but also why governments don't like it.
After I figured it out, I no longer expect Bitcoin to be recognized by the state, and it doesn't need to be. It is part of a special asset, not a currency.
So I don't think Bitcoin is going to become a fiat currency.
First, you are right that the government can never control bitcoin because of its volatility and the blockchain technology it has, second, bitcoin is a currency like a fiat it's just not physically tangible, and that's why it's called a peer-to-peer.
Just think if it wasn't money, I hope it wasn't converted to fiat currency either, you get what I mean. If you look at it from another angle, it's like a credit card that can be used as an electronic payment, Bitcoin is the same, the only difference is that you can exchange it for different fiat currencies globally.