Dr. Paul starts talking about Bitcoin at about 6:10 in the above video.
He says he is NOT opposed to it. He says he admits he doesn't fully understand it. However, he doesn't think it fits the definition of money, the reason apparently being because you can't see/hold it and put it in your pocket.
However, there was a proof of concept done for physical bitcoins. I even own one. A person well known in the Bitcoin community gave his real identity and packaged bitcoins into physical coins, with the value (private key) hidden under a tamper evident hologram. This was to show how Bitcoins might evolve in the future to be used in some places.
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