Paypal is not being used in most of the countries specially developing countries due to foreign exchange rules and they are also gradually lossing places to operate with this rules. Bitcoin is free to trade and even government can't ban bitcoin so bitcoin will surely replace paypal from lots of places and bitcoin is being used in countries where paypal is not supported till now. Paypal are just out there who openely rob our hard earned money with high fee and limitation of our account.
Agree.There are couple of reasons for it.Myself being from a developing country I have a better idea why people don't use paypal here expect for those traders or money launderers.
1.Too much competitors in the same market,instead of paying high service fees to paypal ,people choose to use our own digital payment system which doesn't rely on stuff like document verification or delayed payments .Everything happens quite instantly and have instant customer support.
2.Paying with Debit/ATM cards is at full swing here without the use of any 3rd party payment processors.No one takes trouble of maintaining online accounts.Simply pay through card with your bank's native API and its done.
AFAIK, PayPal stopped in Turkey because the government there did not allow them, so this same government may work on fighting bitcoin and make it illegal !
Trust me,if a government can boycott paypal ,I'm very sure they would object bitcoin in some or the other way.Making it illegal is way beyond.That would just restrict the usage of it but they can't stop people from using it.