Bitcoin is a currency and was created to serve as a currency. It is the volatility of bitcoin and it's limited supply that made people realise that they can gain more HODLing bitcoin than using it to buy coffee. This is where the game changed and people now start using bitcoin more as an investment asset than a currency.
Correct. Bitcoin was created as new type of currency. It is to solve the problem that we always need the third parties to transfer the currency. But it is difficult to obtain legality in each country. So people mostly use the Bitcoin for holding only.