Yeah you're right and it's a major problem for Bitcoin. The whole value proposition is a p2p digital means of exchange that is decentralized and permissionless. All of those aspects are under attack and are decreasing drastically in favor of the state approved custodial store of value use case.

As custodial store of value, Bitcoin has major counterparty risk to both the custodian and the regulatory environment. It places its "value" completely at the whim of speculative narrative, price manipulation, and regulation.

Just as I find fiat extremely risky long term, I'm quickly finding Bitcoin is gaining those similar risks.