However upon inspection, sometimes you will realize that the government acknowledging bitcoin is not actually a good thing.
Why People are always happy when government of a country acknowledged bitcoin, is because the people in that country can buy bitcoin freely without fear of being harassed by government agencies and other law enforcement bodies when they see people dealing with bitcoin. It is also seen as good thing because they won't be scared of conducting bitcoin transactions in public places. It is seen as good thing because banks can then facilitate the process of purchasing bitcoin, without investors account being frozen. You won't be doing your activities in fear, once bitcoin has been legalized in that particular country.
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.
Government approval doesn't stop any business from accepting bitcoin for transaction purposes. It is left for individuals and businesses to decide if they want to accept bitcoin or not. On the contrary I think government approval gives business owners more confidence in accepting bitcoin as means of payments.