> I believe thats because while the US government sees bitcoin as a threat to their currency monopoly, they also see it as more of a threat to other smaller countries with weaker economies. Hence, overall it benefits the USA.

Honestly, I don't think the US government sees Bitcoin as a threat to anything.

Cryptocurrency proponents have often indoctrinated themselves into thinking it is a powerful technology of world-shattering importance ("just give it time!"), but what if that just isn't so? Maybe it's just a cultish sideshow that's occasionally pushed up into fad territory.