Transparency is the reason the government believe they can regulate Bitcoin.
If not they would been aggressive on their attack
We can already see that in monero.
Privacy could be improved now maybe from layer two since Bitcoin has gained considerable influence and community.
If it was at the beginning, it would have had a lower volume.
Instead of an alternative, the government start seeing it as an attack.
I completely agree. Since governments can monitor Bitcoin transactions, they view it as something they can regulate rather than banning it outright. In contrast, privacy coins like Monero, which offer strong anonymity features, have faced bans and delistings from exchanges due to regulatory pressure..
I agree completely with the both of you, but I will just want to add that transparency is just one of the features that have gained bitcoin a place in the heart of the government.
Another is community, community matters in every cryptocurrency and this is why even with bitcoin having faced alot of bans from different countries around the world, it never still failed but keep going and gaining more value.
I believe that if monero had atleast, half of the type or number of community supports bitcoin had and still has, it would have been tough for the government to stop it, for in all, it's not really about the government banning, but the people accepting to stop making use of what the government has banned.