I don't believe bitcoin or any of the other cryptocurrencies were ever going to get much mainstream adoption. The regulations are being put in place to prevent huge speculative losses, which will no doubt occur if and when bitcoin crashes back to it's intrinsic value. Zero. The problem with bitcoin is that it's a technology, and only a technology. Therefore when another better technology comes along (1400 other coins?) it becomes obsolete, so it can't possibly protect against inflation. The underlying blockchain is a fantastic technology, but not as a currency. The surviving crypto's will be those that have some utility other than currency.
As for replacing money, the solution is the same as it has been for thousands of years. Gold. Albeit crypto-gold, where gold provides a store of value and the crypto element provides a transparent digital transactional capability.
It's already in the pipeline. Watch out for my post tomorrow.