That's true, but using CoinJoin, Lightning, or Liquid can make it much more difficult—or even impossible—for the coins to be tracked, and can shake off the government's tentacles.

A lot of people are rightly afraid of creating a taxable event, or of being accused of tax fraud, so they're at best hesitant about spending their sats. But with taking proper privacy measures, and with enough of us doing it, there's very little that governments can do to stop us from simply using bitcoin as money.