If China USA and European union made BTC possession a crime BTC would suffer bigly.
It is mainstream enough that the governments can fuck it bigly.
This is unfortunately true. If governments wanted to, they can't screw up bitcoin itself, because it is decentralized, but they could definitely cause a lot of trouble for the best way to move forward. This should be moving further if governments not just ban bitcoin investment, but possession as well because that would mean everyone would have to hide it. However, while all of that said, I still believe that is unrealistic and won't happen.
Because it is allowed right now, and that part of bitcoin has passed, if they made it illegal they would have done it at first place, but they are not doing that and they made it legal and everyone has it already so it is too late to make it illegal now. Europe and everywhere else, will continue exactly how they are at the moment.