Bitcoin BTC can be a currency only if its price is stable.
Not necessarily. If I'm not mistaken, payment processors like Bitpay convert to fiat instantly so that there's no exchange rate risk for the merchant to deal with.
but i guess that sidesteps the whole "medium of exchange" question. if you need a third party to convert it into an
actual medium of exchange, we haven't answered the OP's question.
How can we get people to use bitcoin as a real currency and not just a quick way to get cash as a lot of people seem to do? When I say currency, I mean the literal definition of currency as something that is used as a medium of exchange.
Even online, there are only a few stores who are accepting it as payment.
merchants will only use it if consumers actually use it. that's why lots of merchants have waffled on accepting bitcoin over the years. there just isn't much consumer demand. people are happy to use credit cards or cash apps. in most cases, i personally prefer credit cards over bitcoin---i get cash back and i have consumer protection.
sometimes i wonder how much of bitpay's volume is just investors taking profits by spending. i can't imagine many people buy bitcoins just for the sake of spending them on consumer goods that are available anywhere.