In most of the cases I have to convert bitcoin into fiat, and then use it for daily expenses. But at the time I'm not spending it in large amount, I am holding it in bitcoin, it seems to be a good thing to do at the moment.
i think most of the people are using the same procedure because most of the people have no or very less facilities of using bitcoin in their real life, there fore when they want to busy some thing from their bitcoin income first they convert their money in to fiat currency and then use it for completing their necessities.