Bitcoin and Paypal are two separate entities so I don't see one replacing the other. Personally, I prefer bitcoin to PayPal any day. PayPal has restricted usage in most parts of the world compared to bitcoin. PayPal still have an option if they are looking to an end with their business with bitcoin's dominance.Bitcoin is very popular all over the world, other hand PayPal also very popular name on many transfer section. Bitcoin have some quality that make better than PayPal.Bitcoin is border less ,low fees no need to go third party.