Magnitude is all you need to know. You have 2 problems. 1 if the government can win the mining with current hardware and energy by an order of magnitude in the best case scenario. And the concentration is probably increasing. You can't have decentralization. 2 you are in the timeline where bitcoin exists and is several orders of magnitude bigger. You don't even have the option of coopting government power like the way mining is getting integrated into power grid stsblization.