Everybody has a cellphone. You pay and receive "money" with your cellphone. Wallets will be redundant in the future, everything that is in your wallet will be stored in your phone.
And you know which currency can be paid with your phone? Exactly!
And if I have to buy something, I will just trade in my value stored with the thing I want to buy. I don't see any need to go to an intermediate thing that keeps decreasing in value.
Paper money was preferred over gold because it was inconvenient to keep working with gold, not because the paper loses its value.
Bitcoin may be good to store value (gold or land being the best), but isn't adapted for exchange, as no one wants to use it to buy something. Sellers should offer steep discount for the opportunity cost in order to obtain the money, which isn't very likely.
As use of bitcoin is scheduled to grow, the pace of the production of bitcoins needed to support the market does not keep up.
This results in a steady increase of the value of bitcoin, which is good for adoption (more people will buy it to speculate and sellers will accept it), but endangers it as a mean of paiement as buyers are always better of paying in $, which devaluates over time, instead of Btc, which will increase over time.
The reason bitcoin will not be used for daily exchanges is the same as we do not use gold anymore. But since Btc has no intrisic value, I hardly see it as a reserve money.