It is true that when it comes to direct p2p transactions. it is becoming a problem to use Bitcoin on chain for that. but I think if you are using a p2p platform like Paxful, Binance , OKEX P2P or P2p of any other exchange then these transaction fee won't be problem. because centralized exchanges have their own transfer systems between internal accounts.
so if you want to use Bitcoin for p2p. use a platform like these. or you can use layer2 sulotions or Stablecoins for your convenient,

but when you want to withdraw Cryptocurrency to fiat for personal expense. what method do you use to sell your bitcoins? do you use Bitcoin in p2p trading, or convert that into a stable coin and then do the p2p trade to withdraw that?

Bitcoin can be both asset and currency. I think majority of newbies who buy bitcoin do so with the intention to have an investment. Only people who have been in the crypto space will be interested in using bitcoin as a currency. This discussion has been going on for years, hopefully a poll will settle it. If enough people participate in the poll, we can use the stats form the poll as reference later on.
If bitcoin according to Satoshi is digital money then why call it investment.
Bitcoin IS an asset. Do you think it's bad?

The over reliance on Bitcoin as a P2P currency than an investment asset is totally dependent on the view of the conventional finance system as a failed one.

Who wouldn't want to enjoy the benefits that goes with Bitcoin as compared to the limitations of the regular fiat system.

I want to ask you one thing, what is your purpose in joining this market? Is it for profit or are you looking for your privacy? Many people are always upset and criticize others for turning bitcoin into an investment, an asset rather than turning it into a P2P currency. But the funny thing is that they are the same people who are discussing bitcoin price every day and profit is the main reason why they are involved in bitcoin. You are sad that bitcoin cannot become a peer-to-peer currency, but if bitcoin no longer brings you profit and is only used like fiat, will you continue to stick with bitcoin?

I totally agree with you on this but I think there is still enough fait value in the world that can be added to bitcoin. If I'm not mistaken bitcoin price increase when more people invest in it. Cause that's what value is all about, when bitcoin was created it didn't have any value until it was used for a transaction. So I think as long as people keep on investing in bitcoin it would continue to grow and for this action to continue it would still have a little volatility in it. So i guess bitcoin at its peak would be when every wordly value is now attached to bitcoin, no fait in any country and bitcoin as the only means of transaction, and this should be when bitcoin stabilises. And that would be a long wait for change, and the process might be far slower than we think.
I think p2p usage can happen even before then, if the congestion issue would be solved, bitcoin would be used more for  p2p transactions since transaction fees would be more stable and affordable in all market conditions. And I think people are still very used to fait currency as a means of daily transactions for several reasons which we cant deny to.
And these could be
1. The average person still has little knowledge about bitcoin, neither do they understand any other form of transaction that is different from the traditional financial services.
2. What people continue to hear about everyday is how bitcoin continues to improve in price, and this impacts them to only see bitcoin as an investment, not as a means of transaction. To check this our enter your stress or even on this forum people discuss more about bitcoin price more than its usability or utility, we are the once still spreading the idea of bitcoin as an investment opportunity than its utility and safety it brings.
3. Bitcoin still sounds so foreign to my mom who is just in her late 30's and same for many other of you here. If I were to teach her, she would ask me questions on same topic for days before she can understand it. So I think more companies should make a more user friendly interface for old users like my ma. And she can rely on etfs is she wants to invest.
With only this three points I think I've made It clear that bitcoin is still a long way from p2p adoption and this process would happen more slowly as people continues to buy the idea of bitcoin as a means for daily transactions with affordable gas fees for each transaction.

You don't have to spend all your BTC on goods and services, but you can spend a portion of it, this is why bitcoiners separate their long term BTC holdings, from funds they want to use for spending on the go. The easy way to do it is to create an online wallet and always keep < or exactly $100 in it, if it gets exhausted, you can always top it up again, this will be your wallet for spending BTC on things you can spend it on.
BTC is a decentralized network that is not controlled by anyone, how can you stop its value from rising. Take note that there is nothing wrong in the level that BTC has risen to and its growth is also going to continue.
BTC is still p2p electronic cash.

I know that Bitcoin was originally created for p2p purposes, to guarantee privacy between two people's transaction that will not involve any third party, but today clearly that original p2p plan has been overtaken, it's now an investment asset. Greater number of people that holds Bitcoin are for investment purposes, I believe that it's a very small number of people that still holds it for p2p purposes. I believe that the reason why people don't use Bitcoin to pay for goods and services is that it's adoption has not increased where everybody has a wallet address and the issue of high transaction fees is a discouraging factor, unless it's between two people which can not drive adoption. But far more people are buying Bitcoin and holding it for investment, they'll accumulate it to sale when price pumps and during bull runs, others holds Bitcoin for trading.

Anyhow we intend to use our Bitcoin is all left to us. The Bitcoin peer to peer adoption is still currently going on but due to the high fee that is involve in transacting units of Bitcoin, maybe investors and traders are now looking out for other coins too they can use for peer to peer transactions due to the high fee and transaction time for a single confirmation if the network fee is not upto what could push and make the Bitcoin to be confirmed immediately. Those who have Bitcoin in their personal wallets not on exchanges are still finding it hard for them to transfer due to the high network fee everyone is facing which is annoying.

up until now, only few merchants are accepting btc payment method or better yet, not many btc holders are willing to pay using their btc. not only because the fees are quite expensive these days but they feel they want to hold it for investment purposes. maybe, they will be motivated to use btc for payment if the volatility is not so much and the fees are quite cheaper. but til then, i don't think many crypto users will be using this top currency just to pay for their online purchases.

so even if you found a merchant or coffee shop accepting btc, do you think you will be willing to pay using your btc incurring a hefty amount of fee and won't know when will your transaction be confirmed? that's the bottleneck we are still facing up to this day. so there's no doubt, many holders are still on the side of having btc as an asset and not just as a currency to be used for everyday purchases.

The growth bitcoin has achieved in a short period of time has made people prioritize bitcoin mainly as an asset rather than a P2P currency. Maybe the global adoption and increase in acceptance would change the mentality of people and let them prioritize bitcoin as a currency over investment.

Just think of the price of an X product priced at $100 when the price of Bitcoin is $45000, and the same product will be priced at $100 when the price of Bitcoin is $40000. This makes a difference in the amount spent on the same product at different times. This means two people buying it at different times using bitcoin could've paid a higher and a lower price for the same product. People don't accept it, and for this reason, it is often considered an investment asset.