Future remains intact of the paper money as worldwide there cannot be one currency. Paper money will not disappear anytime soon, maybe it will be replaced by something else similar to paper. Bitcoin could act as an secondary currency if country adopts it.
I think the paper money will not be replaced by other banknotes version but will be replaced by something more sophisticated like digital currency. perhaps currencies like bitcoin could take over
Bitcoin has all the potential to replace paper money. But the question is what is the level of understanding about bitcoin by people and how many people from around the globe are having awareness on bitcoin payment system. Without any proper answers for above questions, it is highly insane if we are expecting bitcoin to replace paper money.
Yes, we can assume only when the awareness of bitcoin payment system grows rapidly we can expect bitcoin will take over the importance of paper money. Until then, paper money will keep on existing and serving people with it's own significance.
Yes, paper money will serve regardless of the rapid growth of bitcoin kind of electronic payment systems. Because, as you said paper money has its own significance and convenience to get used by people around the world for centuries. If those significance and services could be offered by any other system, then we can doubt about the survival of paper money.