CAN Governments effectively stop Cryptocurrencies?

Note the stress on the "can" and this generally being a question seeking feedback.

In my opinion, the answer is a clear, "yes". But, I admit I may be misunderstanding some fundamental of how cryptocurrencies work.

Step 1) is the government outlawing cryptocurrency or participation in a cryyptocurrency network.

Seeing that most cryptocurrencies don't use a tor level of privacy, anyone's participation can clearly be seen.
Step 2) would be the government joining the the network and recording IP addresses. Str

Step 3) Sending a subpoena, court order, or similar National Security Letter seeking subscriber information from your ISP.

Step 4) Raid, arrest & seize hardware of those participating in the network. Sure you can hide yourself with a VPN, but that just delays the inevitable as the government enacts KYC policies on VPN providers.

Step 5) Governments dance on the grave of cryptocurrencies as few dare use it.

Coments?