It is, if they work for the government and are close to the fiat spigot. They couldn't break Bitcoin. But they could just buy it all up and take it off the market. Even if they never got a return on it, killing it would drive people into other assets, which they already own, pushing up the price of those.

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that would take a massive amount of collusion on a global scale of all governments.. thats part of why bitcoin has stood up so well, is that it takes real energy and capital to attempt to take it over. those that 'work for the government' have a much easier time doing stock market insider trading than mucking around in small market cap btc and having to compete worldwide with others who are playing against them.