"The goverment will run out of money eventually ".
This is the point.
They will never run out of money, due to the fact that they have access to a money printer.
No other users of Bitcoin have access to a money printer.
This is exploitation of Bitcoins game theory, and is not a function of the free market.
They can sustain this attack long enough to ruin Bitcoin, before coming anywhere close to hyper inflating their national currency.