In future bitcoin might also get a paper money form. Bitcoin usage will get increased when it gets the paper form.
Lets just hope that the government will allow that,if the government wont gain tax from what is sold in their country they might push a law about that.
That would be hard. Government is against bitcoin due its bad past. Illegal transactions that have been done and as you said there is no tax. They wont get anything so why accept it.
Yeah and I don't think that government will support bitcoin in future, they will always support fiat as they have total control over it, and they know that they cannot have control on bitcoin as it is decentralized currency.
Yes, and I think paper money will always survive, I don't see any threat to paper money from bitcoins, as people who are not used to digital world will always continue to use paper money.