Alike with the idea of centralization? that won't be as easy as that. If ever governments are about to buy Bitcoin, then they would be investors, which makes it impossible. Their only goal is to tax transactions which are more likely through third party wallets, apps, or even exchangers. Governments who'd buy cryptocurrencies will be in huge loss and the point of doing so is just weird. Unstable market value, decentralized nature; being untaxable if by direct transactions,; which are characteristics they won't like, I guess. To countries wherein cryptocurrencies are being widely used, they did not need doing such thing to adapt this technology.

Banks and governments buying BTC may never be a world wide thing, there may be some governments that would hoard BTC for their own reasons we may never know of, but that number will be very small and of little importance. Think of it, with the problem of inflation and other critical economic problems plaguing many nations, most of them living in poverty and can't provide anything for their citizens, buying BTC should almost be off the cards for them.

I don't know about the government but I believe some government officials and banks have already bought Bitcoin before now and don't tell me you're still among the set of people who still believe in the political game played by the government. In addition to that, Michael Saylor once make a tweet which I searched for half an hour but couldn't find he says " he went to a certain US bank some years ago if they can sell BTC to them and they said they don't do it but the same bank that said they don't do it now asking him if they ^{(MicroStrategy)} would like to buy BTC".

Yes, we are witnessing a similar trend to the early days of the internet. The point is that there is a lot of chatter about Bitcoin and its ability to fundamentally change the way we view money. This coupled with the huge amount of money pouring into Bitcoin startups speaks volumes about its future prospects.

ok lets give you guys some food for thought

ok lets imagine all citizens(households) bak balances totald $5trillion
(google stats of 122m households savings of 41k)

now imagine that %5trill is the amoutnincluding the super rich, whare as the 88% of households are low income with only a mean bank saving of $5.1k

i say thins becasue the FDIC insurance that protects bank account holders does not protect every penny. just an amount below a certain threshold.

so this mean amount of $5.1k would if it was expressed over all households only be $630bill that is most likely in a FDIC reserve(number on computer ready to generate should all banks go bust)

here is the thing. do not confuse commercial banks with government
commercial banks manage $5trill while the FDIC has a pledge to honour $6.26b to over majority of households

now here is the thing. if all banks did go bust.
and FDIC were to set up its own new nationalised bank for households to register with. and it sent out the FDIC cheques to everyone to then deposit into the "new bank"
the us economy of circulating money went from $5trill to 0.64trill.

this if you take a step back.. is the government having a deflationary token because if the economy has less supply. its deflationary where the coin to goods swap rate means people have to only share 0.6t instead of 5t. thus . the government already has their deflationary asset to hedge against the commercial banks fiat.

they dont need anything outside of their system

the reason why politicians decided not to pull the FDIC grenade in 2008 and instead do QE to increase money supply.. = more fiat to plough into banks while putting the debt of QE onto the treasury balance sheet (citizens tax burdens of the future)

is because by doing so would see a 88% drop in GDP meaning US loses its top spot as a economic super power.. and that politically is suicide

they dont want to use deflationary assets. as thats the way they shrink the GDP. inflation is what they like

Will countries really buy Bitcoin at this time and condition, the answer is No: simply because the volatility c of the cryptocurrency market have made Bitcoin unattractive for government.

The highest any government will do right now is to tax cryptocurrency transaction within their country's, due to the global economics crisis a lot countries are looking for mean to raise revenue and instead of looking into investment their looking to borrow to service their recurrent expenditure.

Also Bitcoin is decentralized and at that most countries will see it as a threat to their economy since they can't control Bitcoin, because of that, the countries will rather develop their own CBDC which will be centralized and controlled by them.

Governments do not really need to buy bitcoin as they can always confiscate it as we have seen in the past, but instead of deciding to sell it as they did back then, or at least that is what we were told, they can just keep it, however the risk that you mention is real, they managed to control gold in this way and it is likely they may try to same tactic against bitcoin as well, however even if private investors hold most of the bitcoin in circulation once the governments decide to accumulate bitcoin through confiscation and taxes then at some point they will become major holders whether we like it or not.

Immediately one have a taste to how sweet a decentralized network could be of importance to life in general then one will begin to make sure in avoid anything that has to do with central authorities, now to sum it up, it will not be as easy as expected when the time comes whereby the banks and government would have also supported bitcoin and buy it, adopt and even encourage others to invest and use bitcoin, but till then we wouldn't conclude on how feasible this could be now nit until governments begin to massively adopt bitcoin.

I think they aren't. They had some exposure in 2020 and 2021 but most institutions left the market when we crashed to 30k. I saw some analysis by glassnode early this year and they were showing that institutional outflow was in November 2021 and then again early 2022.
The rest of the crash were mostly scammers who used bitcoin like Do Kwon who dumped 2 billion on the market. I suspect some of the crash was also SBF who was selling coins people were depositing on his exchange to buy himself houses and bribe politicians.

IMO the attempt to destroy bitcoin through FTX was made so that the banks could go towards CBDCs instead of buying existing cryptocurrencies. They are playing their own game.

Government can't buy cryptocurrency and Bitcoin for investment or holding it for long time, the only people in the government can do is what you just said, because government dislike cryptocurrency because of  the heads of the government are thinking that while Bitcoin is like that, it's because of they thought over Bitcoin is that Bitcoin is a currency that will make fiat currency to be valueless,and that's why government is against Bitcoin totally.