It's nothing like burning money. The paper money is anyway not going anywhere any soon. Cryptos will evolve as an alternate method of transactions and possibly a more secure method as well.

And this won't wipe out the regular currency at all because its rooted to thousands of years and will remain for plenty more. However, bitcoin or cryptocurrency is not extracting money from the already available monetary forms. It is gaining its own value which brings this fear that one day the whole money available will be short of exchanges for bitcoins.

Well, thats not the case. Because only a limited number or amount of bitcoins will be ever produced, which would require some more decades, but it has a limit anyways which would never create an inflation in cryptomarket as compared to paper money. Once the limit is reached, maybe some more forks might be frequent, or the division of one bitcoin into multiple satoshis will occur and hence will check any possible inflation.