I think you are wrong. Government don't misunderstand Bitcoin or the concept of it innovation, but due to the inability to control Bitcoin and it decentralized nature, is the reason why they dislike it. Another reason is that they see it as a  scam attempt to defraud many people since it has no account number like bank which you could easily trace people ACC and their activity and also correct some issues. but in crypto currency if a Bitcoin is lost to a wrong wallet it will be difficult to reverse and if it's large fund , you wouldn't be able to reverse it.