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Bitcoin could easily clear 1 trillion in market cap since it can be Applied globally. There is more than a 100 trillion US dollars in circulation today and rising (obviously).

The big obstacle for Bitcoin is currently that people only use it to Exchange back to their own currency. If people and retailers would begin to keep the Bitcoins AS BITCOINS, this would be a very differet story.

But as of now, Bitcoin is just a modern form of paypal.

Well of course they do not use it, the transaction speed is too slow. Compared to Ripple or Stellar Lunem for example. And like I said, I don't think people will ever use it as a currency but rather a commodity.