The problem is that a Newspaper isn't Candy Crush.... in Candy Crush you can either pay or beg your friends. If it's news an alternative source is just a google away.
Frankly the mere fact that you are making that comparison tells me you don't understand the market at all.
Not all articles are news in the traditional sense. Editorials, opinion pieces, historical perspectives, analyses of markets, etc. are not a google away. The dilution of the news market is because a lot is poured into hype, that is a google away. High quality content gets people back which is evident in how the New York Times manages to maintain loyal readership and profitability.
This is the problem for conversion rates. Most pay-walls are all or nothing. The New York Times currently allows me to read a page referral but asks me to sign up when I try to navigate elsewhere which is smart but probably not good enough.
I understand your stance on low conversion rates for pay-walls but the problem lies in what users perceive as value. In-app purchases work when users want more however news sites try to sell an all or nothing. I think the right approach to increase conversion rates is when publishers learn from FarmVille.
That being said, the value of Bitcoin is that it allows anyone to buy/sell without going through legal processes. I for one live in Lebanon and I can't for example sell paid apps (only free apps) in Google Play which means I'm not a publisher. The primary reason for that is financial law and what have you. Bitcoin simply bypasses all that allowing anyone to be a publisher or consumer. For newspapers they even can rely less on advertising and start focusing on what users are willing to pay for instead on what hype gets users to click through. What I'm trying to say is that Bitcoin frees publishers from local regulations while allowing them to be international on day one, but the problem is the sales approach not the selling value. The proof is in the pudding: in-app purchases.