Sure,bitcoin can conquer paypal.In bitcoin,payment is irreversible and so retailers would favor it.Transaction fees is also minimal in bitcoins.Transaction time taken is a lot more and it has to be solved.User foundation of bitcoin is low when compared to paypal and so consumer volume of bitcoin has to be elevated.Most of my pals have shifted to bitcoin payment leaving paypal.
Actually, people will continue to use PayPal with bitcoin till services like eBay, Amazon do not start to accept Bitcoin instead of PayPal.
For example, I had totally logged out of PayPal and thought that I'd never login again, but then today I had to pay for my SAT exam (collegeboard), and using PayPal was the only available option for me.