The most popular reason why bitcoin is in demand is because of how flexible a virtual currency to get around the world. Well, if you do a physical or tangible thing of bitcoin, that will be same as local money on your pocket for sure. Also, bitcoin price is not so stable value like your tangible money on your pocket so think about it man. Just adding some thoughts on this thread.
Just because of having bitcoin in physical format, we cannot assume that bitcoin must have only a constant or stable value. We can use physical bitcoins in the same way in real life how we are using right now online. Bitcoin's volatile nature of value is not a barrier to have a physical form to it. Gold is being used in physical form but its price is also daily fluctuating then why not take bitcoins into physical form. Everything will be possible in crypto-world then wny not just the physical form 
.If you want to see bitcoin in paper form then the purpose of creating bitcoin will get shattered.
No. It will not. Already physical coins are available everywhere. But when you are using physical bitcoins, you need to refer its value online or from somewhere else where the most recent prices are available to get the exact value of it. Other than this, there will not be any other inconveniences are possible especially having bitcoins similar to fiats.