You are right! That's actually a problem: BTC can't be used for small purchases, moreover, nearly none of the business initiatives accept payments directly in crypto. That's why cryptocurrencies are not real currencies. I think, it's an asset: cryptocurrencies are a new form of digital assets.
I also think so. Even though bitcoin can be used as currency, for now it is still dominant as an asset
Admittedly, Bitcoin currently faces challenges in gaining widespread acceptance for small purchases and is significantly less adopted by businesses, however, it is important to consider the evolving nature of cryptocurrencies. Even though it currently does not function as a traditional currency, cryptocurrencies have asset and currency qualities.
Bitcoin's value as an asset is undeniable, but as adoption increases and infrastructure improves, Bitcoin has the potential to become a widely accepted currency in the future. The ongoing developments and innovations in the crypto space show that cryptocurrencies are more than just assets—they are a transformative force that is reshaping the financial landscape.