Think of the trust that people have towards fiat money. So, we had USD backed by gold 1:1, and they claimed that each Dollar can be exchanged to gold at request.
There was a situation where France wanted to check if USA really owns enough gold, so they asked for the US government to exchange all their fiat money to gold, but the US government refused. It broke the deal and took US off the gold standard. They basically told the world that they won't honor the deals they make, but people still kept USD. Everybody should've dumped at that point because that's what would happen to a coin like BTC if Satoshi came and said that he's going to change the protocol to whatever he likes, like that there will now be 30m coins instead of 20.

It's business the government are doing for your information, in every business, there is a risk and every risk causes profits and losses, the government are already aware of this fact that's why they continue to purchase more into the portfolio and never sell. If you should be talking about problem that arises from any corner, there is another solving point to that problem if they find out Bitcoin is looking frustrating to sell off to solve the problem which makes them not individual but a body of institutions all together.