Bitcoin is meant for spending, but people often prefer it to become an asset rather than a means of payment. It is the choice of the majority to have Bitcoin as a savings tool rather than a spending tool. Why? It is because they see a profit opportunity. If we see Bitcoin as nothing before because of its sole purpose, now it becomes valuable because of its earning potential. This thing gains more interest than just being a currency.
We admit the fact that people prefer paper money over Bitcoin (just for now). It will take several years before we see Bitcoin being considered as a full-fledged currency.
There are different factors that is impacting Bitcoin adoption. One is the fact that there are many countries where Bitcoin and crypto are still not legal, you can't use Bitcoin in such countries and the only option we have is to hodl. Moreover seeing the massive increase in price of Bitcoin over a small period of time, people prefer to hodl it rather then using it as a payment method.
Paper money has it's own worth and value because to meet our daily livings we need paper money. There is very rear chance that paper money will cease to exist in coming years.