Okay you can take it as a pessimistic POV but ever since the interest by government and institutions I feel we are losing on decentralization and privacy.
Don't get me wrong, I love to see Bitcoin price rising and adoptions but it's like the reason is rising is flawed. People joining for sometime now are only in it for the potential price increase and care nothing about a decentralized system.
You are right on point.
Government and institutions' interest in bitcoin means privacy out the window. Regulation will be introduced. No kidding the institutions are the governments and the governments are the institutions. And they influence one another in this case. And they are that powerful to do it.
Look at the news about Thailand government and its tax free thingy with bitcoin purchase from designated exchanges. And we know that those exchanges will demand for their customers to do KYC. Governemnt.
I think that in the next decade if the government wants to agree to bitcoin fully, they are going to incentivice it so that peoople who agree to use it based on their terms will have some good peaks but their privacy will be gone while the reverse will be the case for the people who are opposed to it. They will pay dearly for it.