You are assuming that bitcoin is fighting that war, and I don't it is. So if it is not fighting it, it can't really be losing it. Bitcoin right now is focused on the scalability problem, and is also dealing with regulation. These two things are fundamental aspects for bitcoin to succeed in the future as a store of value asset, and right now, this is the primary goal of bitcoin. If it ever succeeds there, then it could become a currency as well, since bitcoin can easily be used as a form of payment. The only reason BTC is not used like that, is because of the scalability issues, and it's volatility.

Privacy is important, but I think bitcoin offers enough privacy for most people, so that won't be an issue.