Nigerian government ban via bank then using same flawed reason most countries do
That it can be used to finance terrorism and illegal activity. 
And the US didn't invest in Bitcoin from their personal fund but turned seized Bitcoin to their treasury.

On tax, the worse I have seen is that of Netherlands with their plan on introducing compounded tax.

Most governments have never been in favour of Bitcoin and allowing it to operate without any problems. At the beginning, when Bitcoin started to gain traction and more and more people were getting involved, countries tried to ruin its reputation using the mainstream media and calling Bitcoin a currency that is used by criminals or it is a scam or a bubble that will burst very soon and anyone investing in it will lose money. However, none of the tricks really worked, and Bitcoin kept developing and reaching new milestones, but then some of the governments started banning it outright, like China, where people couldn't use Bitcoin be involved with it in any way or they would face legal trouble.

Despite all the efforts of the governments and countries around the world, Bitcoin kept progressing, and eventually, they realized that there is no other way than going with the flow, and then they decided that even though they can't control everything, since they can't have any sort of control over the blockchain or non-custodial wallets, etc., they decided that they are going to impose regulations and regulate all the centralized platforms, wallets, and tax every user for their capital gains or holdings so that they can also benefit from it. This is still in progress, some countries have already done it, some are working on the regulations and the overall legal framework, but the point is, that the governments are now compelled to let Bitcoin reign, whether they like it or not, because they don't really have a choice anymore.

Thank you for the correction but I was only trying to point out what the government of different countries view Bitcoin, like Nigeria government ban the use of it or transaction during the regime of former President and its really affects traders but today's view, government see crypto as a taxable property or business to generate revenue base on the inflow of Transactions being carried out by citizens, that's my point. But I will improve my writing as pointed

I am still in limbo when government say they want to tax crypto especially Bitcoin, given the decentralized nature of Bitcoin, if I decide to hold for a long time, how possible will it be for government to be able to tax my crypto especially when it's not on centralized exchange. What really tickles my fantasy in this discussion of taxing crypto is the fact that, this is an asset that has a liquidating ability, and I bear the risk alone as an investor, so at what point does the government have the right to tax me when we don't share risk.

The government doesn't tax you while you hold your Bitcoin in a cold wallet but it is only when you swap, sell or spend the Bitcoin, that you get taxed. You are definitely using the cash system of the country which is why it would be hard for the fiat system to be eradicated.
As long as you are holding for long term, on a wallet, there isn't a realized profit and no government can tax your asset at that moment.

Yep, that's the reality. Governments will first classify the type of cryptocurrency, like whether it is a currency, stock, asset, or commodity, so the respective agencies can manage it. At the end of the day, the only thing that matters to them is taxes and revenue by bringing investors from all over the world. But taxes can't be the only benefit. As I said, investors would love to invest in US based companies due to transparent regulatory rules. Trump also got a lot of support from the crypto community in the elections by supporting crypto.

Nigeria is also now changing its framework because the number of cryptocurrency users has increased, and they can now collect taxes to generate some real income. These countries could have imposed taxes a long time ago, but they always wait for the right time.

Not every country is like El Salvador or Dubai.

This is not the real fact that they don't like it because it is currency or an asset. The main reason why governments dislike bitcoin as a currency and asset is that it is decentralised, which differentiates it from escaping the traditional finance system. People who are experts in this really know how to escape the traditional finance system so that they don't have to pay taxes. People use DEX platforms so that they can make sure that they are not exposing too much information and their identity to authorities. That is the main reason many governments oppose it. Well, this is only a single fact that I share with you; there are some others too.

Bitcoin won't be legalized by any country if they cannot benefit profitable income from it. Since people are into bitcoin investment, then the government will just ride with the huge demand of bitcoin as an investment. Bitcoin has been taxed significantly, which leads to the growth and progress of the country's economy, aside from those countries who are secretly hoarding bitcoin for their financial reserve.

Same thing may apply if bitcoin will be allowed to act as an alternative currency globally.

I believe religion contributed to why some countries actually banned crypto ownership and transactions,

for example In Afghanistan, after the talibans took over, they banned crypto activities on crypto on religious and anti-fraud grounds, went ahead to arrest crypto traders and shut down local exchanges because they viewed decentralization as a violation to some Islamic laws.

Again in Egypt, Pressure from the Dar al-Ifta, their primary Islamic legislator body which has classified Bitcoin as "Haram" played a significant role in it's prohibition based on cited Islamic law. This religious stance supports the central bank's tight restriction on crypto activities within the country.

I think it is too simple to relate crypto restrictions to religion. The government have their own several economic and political reasons concerning cryptocurrencies. For example, it can create a difficult situation for the enforcement of capital controls, challenges that might happen for the taxation and AML policies, and it can even compete with their national currency and banking system. The same situation even exists in some other countries where religion is not a significant role in terms of financial regulation.

In case of Afghanistan, the major factors behind why they implement the restriction is because of their concerns about frauds, financial stability and they are lacking regulatory control. The same thing with the religious authorities of Egypt that classified Bitcoin as haram, this implemented restriction by their government can also be considered from the perspective of monetary control and protecting its banking system.