If a government can tax your bitcoins that means YOU didn't understand what Bitcoin is and you weren't buying Bitcoin, you were buying something to get rich quick. When you use centralized exchanges and comply with their KYC crap and give them all your information and "confess" to what you have, you are using Bitcoin wrong.

Bitcoin was created to give financial sovereignty, something you won't be able to have when registering with a CEX and complying with their KYC. Without it, the government won't be able to tax you!

Bitcoin is not created to be a hedge against inflation, that is just the side effect of the fiat system being flawed. When they print money, they ensure that the only money in existence (ie. Bitcoin) with a capped supply goes up in value therefore making it a good hedge against the fiat inflation.