I think Turkey sets the precedent for how a declining US dollar will affect crypto. In recent polls, Turkey was credited with having the highest crypto ownership per population size of any nation. Part of this is likely related to the lira (turkey's native currency) inflating at a rate greater than 10% per year. The more conscious people are of their native devaluing currency and high inflation, the more likely they are to invest in crypto currencies.

Paper money will always be more efficient and effective in some roles than electronic currency. Its easier to tip waiters, buy weed, sell goods in flea markets and garage sales and do other things using paper money than using electronic merchant services like credit cards or crypto. This efficiency and effectiveness translates to greater financial flexibility and versatility which ultimately translates to greater economic strength.

Eliminating paper money would be a mistake. It would kill jobs, make life harder for 2nd hand sellers and small businesses and have other negative financial and economic effects.