Indeed. Paper money however doesn't form a threat to the economy since it's something issued by the governments. Bitcoin however is something that breaks through this system, and offers people a way to bypass any central authority. Paper money does to a certain extent allow you to bypass the government as well when it comes to conducting offline transactions, but we have already seen that the government suddenly can choose to take certain paper bills out of circulation. So even with paper money you're not safe from the governmental tyranny.