As a BTC holder I can say that it is necessary to find a certain balance between a long-term investment and using BTC as the currency for paying for goods and services. What actually prevents many to spend their BTC is the fact that they don't really have anywhere to spend (at least not locally), and if they decide to buy online from other countries they may face extra costs in the form of VAT and customs fees.
Long-term investment does not necessarily mean that you can sped it after a long time of storing it, not just as the term literally mean. Long-term investment has to do with perfect timing in pulling it out, as what you mentioned the balance. Atleast now we have several merchants that accepts bitcoin locally and internationally, it just so happened that we are facing a crisis right now and they are not operating. Crypto payments might be anywhere if people would come to agree that it is a alternative currency rather than just investment perhaps we'll see many markets that offer a crypto payment method more often.
BTC as a currency and store of value is something that can work, but everyone should contribute to that end.
Well having it as a currency and a store of value increases the risk from it's volatility. Just not a good idea for me.