Personally, I would rather hold my bitcoin that spend it because I am looking forward that soon it can go beyond the $20,000 (or almost) reached in 2017. I am sure that am not alone with this mindset right now.
Is there really something wrong with this scenario for bitcoin?
I don't believe that anything is wrong with it. In the current state of Bitcoin that primary use is precisely the best possible use to be brutally honest, for now. Those like me still want to use it to buy stuffs, even sometimes. Which is perfectly fine and in fact helps a lot in another way that not that many is doing right now.