See, I don't agree. Doesn't matter how much governments try to attack privacy. If you analyze it, the foundation of privacy is things being free and open-source (FOS). If a thing is like that, then almost everyone will be able to give it to you privately, without any vigilance.

Now, Bitcoin will cause everything to deflate, and if they get deflated enough, they will eventually FOSify, doesn't matter what governments want or pretends to do

Therefore, in my point of view, Bitcoin is by itself the sound foundation for privacy and can't really be stopped in this task, because that would mean to stop deflation and kill Bitcoin, something that is near to impossible