There's a whole thread on bitcointalk about how people spend their bitcoin and the near unanimous answer was, they don't. Most bitcoin is being held or speculatively traded. It doesn't interface much with traditional marketplaces and very few commercial entities accept bitcoin directly (without going through bitpay or some other provider that converts it to fiat). This doesn't mean it's dead, but it seems quite unlikely that bitcoin (in its current, anonymous incarnation) will be adopted into the financial industry. Many bitcoin supporters don't want that to happen anyway, they'd prefer for bitcoin to subsume traditional fiat. Not gonna happen. But it could continue to exist as a parallel currency used by a minority of individuals with other digital assets taking the place of the lapdog of banks and FIs.
Taavet Hinrikus did say it is early days. It is indeed. Bitcoins will not soon compete (never mind
replace) fiat at the point-of-sale except on the Dark Web. My own view is that the
BTClockchain will end up being used massively for data registration by FIs and banks using it to back up their permissioned-blockchain hashes as a form of public accountability, like legal notices published in newspapers; and by the public for routine notary purposes. Ethereum will play a role in this and also expand bitcoins' use as a contractual currency. And apps will allow writers and photographers to quickly and cheaply register their keystrokes and pixels on the
BTClockchain. As of now (this instant anyway) the bitcoin price is rising and Blockchain.info shows a steady stream of transactions as it always has. Their precise amounts ($.09, $30.73, $3945.76, etc.) indicate more than speculative trading. They indicate use in commercial transactions. There is every reason to believe that those kinds of transactions are here to stay and will grow over time -- and that Hinrikus, Hearn, and Dimon will come to regret their remarks.