As with all other forms of prohibition, the banning of bitcoin would merely stimulate a black market for the digital currency. At this point the genie is out of the bottle, and there's no turning back. Bitcoin is a legitimate currency, as Japan has recognized. Some nations will ban it, which will only hurt them in the long run.
Yep, Bitcoin won't go away if it gets banned. It is nearly impossible to monitor. The government doesn't have the resources to keep up and track every Bitcoin transaction, so it would still be used. With that said though, it would definitely hurt Bitcoin a lot, because many people follow exactly what the government tells them in terms of propaganda... and if they made Bitcoin out to be something shady that was illegal or only used to buy illegal things then it would not be good. Like you said, any government that does this will end up regretting it in the end.
- Well, Bitcoin is not in the administration of the law, the government can not control it and if they ban Bitcoin, other people will also use it normally, the government can not do anything, turn off the internet, I do not think this is a good idea. In addition, bitcoin is proving its value and potential, it has a huge impact on the economy, many countries are considering to accept and use it, banned bitcoin is not possible, so they are thinking of helping bitcoin more popular to support the economy
