However upon inspection, sometimes you will realize that the government acknowledging bitcoin is not actually a good thing. First of all, the government's acknowledgement is limited to only being a speculative asset and not as a currency that can be used for official transaction. Second, their rules and regulations usually include AML and KYC which totally strips away investors' privacy and disregards decentralization. Third, governments only acknowledge bitcoin to implement high taxes which only drives investors away.
So at the end, not all kinds of acknowledgement is good.
The facts that the government have acknowledged Bitcoin overshadowed the negative parts of the government acknowledging Bitcoin because people are more interested in the approval from the government so that they'll be at peace when they're investing knowing that the government won't one day wake up to ban Bitcoin and then all their investment becomes wasted efforts. The bad side of the government can be handled with educating the public but that's not the concern of the enthusiast of Bitcoin.
People are after Bitcoin's adoption as their main concern. Any other problems are secondary for now and not main priority. Government acknowledgement of Bitcoin makes it more mainstream and introduced it to more scammers and since the industry isn't occupied by those with good financial education, they end up becoming victims to scammers and that's another disadvantage but with proper education, we can eliminate all this flaws.