If there was an alternative currency (paper money) unregulated by the Government would you use it?
Of course not. Why should I? Legal currency that is regulated by government already there, bitcoin comes as the alternative in different from that is digital. It means bitcoin is as valued as fiat (even though it hasn't been accepted widely), but bitcoin has value just like fiat. If there's paper money unregulated, it is not legal then, that automatically has no value.