I agree that it will hurt the U.S. But collectively they don't see that. So they might end up shooting themselves in the foot and going down the route that leads to less people being able to use bitcoin freely.

I'm sure most people here would like to be able to use bitcoin without the threat of the state coming down on them no? Yes, bitcoin still works even with totalitarian governments, but if we want bitcoin to be as accessible as possible to as many people as possible we need to make sure that governments aren't cracking down on it and that people have a different view of it culturally.

Winning over the minds of the people matters way more than bitcoiners think IMO. We don't want Bitcoin to be a niche technology that is only used as a last resort to overcome tyrannical authoritarianism, we want it to be understood and accepted by as many people and governments as possible.