Time will indeed answer everything
Indeed time is the best answer. When we talk about paper money, I think we talk about cash particularly (paper and coins). Just open any book about history and observe that people has been using cash money for thousands years. And some people think that digital money or cryptocurrency will replace it in nearest future or during our lives? We all can dream that one day will conquer and explore space, everything will be digitalized. But it looks like that we will destroy each other faster than will have first space colony.
I think this is why we do not have a proper answer to it. Paper money is already going away, not just because of crypto but because of all the digital payments. Credit cards and debit cards took over the world, and even digital debit cards too, where you just deposit whatever you want into it and if it ever gets hacked then only the money in it could be stolen and nothing more.
So, when you consider all of this, I believe that it gets to a point where it is a lot better. I am not saying that we should be expecting it to not even exist, there will always be some paper money a bit, but not a lot I am sure that soon it will be very rarely used for only few things.