Not necessarily though, because although I hate that government have this much power, they can in some ways regulate this…. And what if, in an even worse scenario, one government comes to own all the bitcoin? And to your point all of these things actually may just get worse if Bitcoin is universally adopted as currency… because then there is no alternative.
Discussion
If an entity owns all of a thing, it is not being used as a money.
If a government does this, demands bitcoin as payment, and none is available to pay, then it's up to the people to overthrow that tyranny.