Personally, Im not a US citizen so I dont really care about stricter regulations. And even if my government decides to make more regulations on crypto users and crypto assets, it will not bother me at all since bitcoin is decentralized coin. How can you put tax or put new rules on a virtual object which you can't even control it.

Though, more regulations mean less users. Hope that it will not happen like i think

Well, i have seen that the future of crypto industry will attract regulations from the government.  the reason why there are less regulation is due to the fact that the industry is still very young.

But, here is what i want to know. How will the government regulates bitcoin and other cryptocurrencies that are decentralized?

This is a very interesting question, I read an article that suggests government is prolly going to require every crypto user to carry out transactions only on an exchange, but whichever way you look at it that's not going to be possible, crypto user will still make use of their personal wallets and carry out transactions via P2p, which the government cannot track or regulate.

Having said that, this makes me draw a conclusion that if stricter regulations are to be implemented, the government is going to work with exchanges, cause this exchanges are registered with the government and they hold their users data and information, and like it has happened on numerous occasions, they'll not hesitate to give that info to the government, if they request for it

That's correct.
Also the more the regulations, the more credible and accessible they make crypto for the average Joe (who will use regulated/centralized tools at first and maybe decentralized later).
This means that "Bitcoin is illegal money" narrative will not catch any longer and the masses will get to discover it.

So I cannot agree more. It's an excellent news.

It will affect other countries if US decides to put strict regulation. More strict regulation means more restriction "free movement" between US and rest of the world. Hence, others might try to avoid anything related to crypto currencies that is associated with the US. Or your governments might also follow the same move.

You can't. As long as you aren't involved with fiat currency, there is nothing they can do. But, if you convert them to fiat anytime, you will be subject to a tax. This also involves making purchases through vendors that don't do direct "P2P" transactions. Lets say a site uses coingate to accept bitcoin as payment method. Now when you purchase anything from that site, you pay coingate to convert your coins to fiat and pay the merchant. Hence you have created a taxable event. Laws differ from country to country. Know your laws.

Biden and his regulators must look at the mistakes of the past... let's just look at the Prohibition in the United States, a nationwide constitutional ban on the production, importation, transportation, and sale of alcoholic beverages from 1920 to 1933. What happened when they did that? Answer : People went underground and they did this illegally and the result was a massive drop in the taxes... because the illegal trade did not pay taxes. 

They can regulate all they want and some people even welcome it, but once they start banning something... people find ways to bypass it and the government suffer the most. 

I won't be surprised with anything that will come from the US kitchen, no matter what it was about - even when it comes to cryptocurrencies. What I see as the biggest problem is the fact that Bitcoin has become increasingly dependent on just one country, on one crypto exchange or one man’s vision of how things should look (it doesn’t matter his name was Trump or Biden). Everything that happens there (good or bad) will affect the whole world, and especially those countries that the US keeps in a small pocket and that unquestioningly carry out all orders.

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It’s not a very good comparison, alcohol is something people have been using for thousands of years, and you don’t need to be overly intelligent to produce it, much less to use it. I don't know how much the authorities lost then because of the alcohol ban, but today the state treasury is filled with about $10 billion a year from alcohol taxes - and it would be interesting to know how much taxes are collected on everything related to cryptocurrencies.

Of course a total ban would not literally kill BTC - but imagine all those thousands of crypto ATMs that would have to be removed, Coinbase and Grayscale that would have to stop doing business and all those who have some assets in crypto would find themselves in a pretty difficult situation.

Yes,but more regulations over the centralized exchanges means that decentralized exchanges will have to be regulated as well,or declared illegal.The government officials aren't that stupid.They know that imposing more regulations would mean more people moving into non-regulated crypto exchange platforms,so the officials will have to find a way to regulate the DEX marketplaces.
KYC policies like ID verification might not be sufficient for the "big government" anymore.
Be ready for mandatory address verification.

Well, this is not only for US but for the other countries as well! It is an established fact that bitcoin and other cryptocurrencies are actively being used for many illegal activities around the world. Now after the recent price surge bitcoin was able to catch government's attention so we can expect a more streamlined regulations to put in place so that government can maximize revenue and lower the illegal usage. US may take a front row seat here!