But I wouldn't use Bitcoin to pay for anything that fiat can pay with unless it's very necessary, if I were you. Bitcoin is a provably scarce resource, don't waste it. HODL.

Agree with you here on all accounts.
Just because you are physically able to pay with BTC doesnt necessarily mean its the wisest idea.
Why not? Poeple keep holding bitcoin and trading other cryptos, making a fake impression that these are some pseudo-securities or commodities. Bitcoin IS money and it SHOULD be used to pay the bills and everything. Given the bearish market, it seems reasonable to save some BTC for later, just like sometimes people make fiat savings. But the rest of it should circulate, should be useful in the real life. I would gladly use my Bitcoin to pay the bills, for instance. Unfortunately, each time I have to sell my BTC for fiat and then use it. Bitcoin is the better money, so why not use it in accordance with its main purpose?
Unfortunately Bitcoin is not money. At least not yet.
It is still an asset and this is how it will remain until the volume that forms the BTC rates will come from those users that are paying bills with it and treating it as a currency and not an asset. Right now people are still trading it as an asset more than they use it as a currency.