Sure Bitcoin appreciation could gain in multiples and some governments could try to turn that taxes or even holdings into a method of reducing debt, but what's the point? The end game will always be back to devulation, no government can survive at the size they are now without inflationary monetary policy and asking these entites to go against their own short term interests is a tough sell

How people use their Bitcoin is up to them, sure many will realise gains in fiat and fund the government with it, maybe some governments seize it who knows, Bitcoin is money for everyone, and many assholes will own it and eventually squander it