When we reach the point that regulations are more noticeably harming bitcoin fungibility, Monero has a chance to become the most popular currency if the worldwide hashrate increases dramatically.

Right now there is not enough hashing power to properly secure Monero from a wealthy and motivated attacker.

I think there is no question that if Monero was launched at the same time as Bitcoin that Monero would be the dominant coin. Instead Bitcoin had a big head start and benefits from economies of scale (merchant adoption, user base and network hashrate).