1. of course not but using bitcoin to buy illlegal things is only a descretion to a bitcoin holder. But, even if you can actually buy illegal staff it doesn't mean that you will not be compromise for some exchanges are implementing one time KYC doing transactions with them.

2. Bitcoin is a digital currency. It is also considered as an asset because of its nature the volatility and people were hoarding on it instead of using it as a form of payment. In this matter since bitcoin is volatile using it might loss the one especially if market price is down. It is not a good practice if one will use bitcoin as a form of payment if market is down.