It's not a matter of what WE believe, it's a matter of what the governments we live under believe. We can scream 'till we're blue in the face that no combination of ones and zeros should be illegal, but that won't stop you from spending a long time in a very unpleasant jail cell.
The idea that crypto-currencies couldn't be regulated was always a fantasy pipedream not grounded in reality. ANYTHING can be regulated, and EVERYTHING that impacts people with power and money eventually will be. You can argue about the effectiveness of the regulations, but not about the possibility of their existence. As for the effectiveness. I see that as likely being fairly high, Bitcoin is completely useless as a currency for many reasons, which means it only has value if you can get your money in and out of it. If nobody is willing to facilitate that transaction, nobody will want to use Bitcoin. We're already seeing this starting, many banks and financial institutions have blacklisted any company dealing in crypto-currencies, some governments have outright banned it, and while this has been happening the value of bitcoin has been plummeting. We'll see if an equilibrium is reached here where governments regulate, but don't completely ban, crypto currencies. It may happen, but we may also see the "value" of bitcoin plummet to near zero.