I don't believe Bitcoin will be what replaces paper money and electronic government debt. I'm not even convinced that Bitcoin will be the survivor in the crypto coin wars. Most initial iterations of software are not the final useful form that becomes popular.
The bitcoin protocol has evolved somewhat since it was originally released in 2009.
You could compare Bitcoin to Microsoft windows (disregarding the bugs, security holes and other drawbacks of windows). When windows was first released it was very different then it is today, it had much fewer features, however it has been very successful for microsoft and has really been the most popular operating system since it was released.