Bitcoin hasn't been extinguished because it's not a replacement for fiat. Transaction scaling still isn't there and no one in their right mind spends their bitcoin on coffee when it could 10x in a year and then drop 90% from there just to 10x again. It's become an investment class and governments are fine with that because people are investing their fiat into it and then pulling it back out to fiat later. There's no threat to their sovereign monetary policy yet.