We sell Bitcoin through local exchanges easily because Bitcoin is legal here. But we can not use Bitcoin to buy something because that can break regulation from the government. If I want to buy something, I will sell Bitcoin, convert it into local fiat, withdraw it into my bank account. It is the way for people use their Bitcoin and they still using fiat to buy something.

I don't planning to buy something using Bitcoin because I want to accumulate Bitcoin and not use it. Maybe in other countries, they can use Bitcoin to buy something. While I have time to buy and hold, I choose that instead spend it to buy something.

Why bother use to buy something when you can sell a little of it then change it to your respective legal tender and use to buy something

In my country, it's easy to sell Bitcoin, there are Bitcoin ATMs that let you withdraw without KYC, you can easily deposit Bitcoin to local exchange, convert into local currency and immediately withdraw to any local bank account but to be fair, it's very hard to spend Bitcoin if you really mean it. There aren't shops and services that accept Bitcoin or crypto transactions. If your aim is to convert Bitcoin to USD or local currency and then spend however you wish, then it's very easy and possible in my country.

In the country where I live, it is quite difficult to pay for something with cryptocurrency. And this is despite the fact that crypto has a rather gray status and it turns out that there is always a risk that after such a payment the tax authorities will come and start asking uncomfortable questions.
However, the most common cryptocurrency payments I make are payments for gaming services and Telegram Premium. I also spend cryptocurrency to pay for servers and data download services. It is almost impossible to spend cryptocurrency on physical things or products in the country where I live.

Although Bitcoin has been legal in my country now, before that we were using it even though it was not legal here. Now, you may wonder how we were using it in our country even though it was not legal here all that time. All of us used to do P2P transactions and convert our crypto digital assets into fiat so that we could use them without having any trouble. Mate, in the last time when it was not legal, banks started to track users transactions, like where the money was coming from and what the source of the money was, and whenever they felt that this amount came from crypto-fiat conversion, they started to block users accounts who were involved in the crypto space.

We had an alternative at that time; we used to use an alternate small banking system at that time that did not put any kind of inquiry, like where the funds came from and what the source of money was. But now it is legal in our country, and we can use it having no trouble.

The free use of Bitcoin is completely prohibited in my country, especially since the central bank and government have completely banned its transactions and use. However, in my country, there are a lot of users, especially over four million users, who indirectly transact Bitcoin, disobeying the government and the law. However, no positive steps have been taken by the government so far. It is unlikely that the government and central bank will allow the use of Bitcoin in our country in the future.

So far it's not easy to buy or sell Bitcoin along with other crypto in my country. Recently our government has formed a council with name Pakistan crypto council whose mandate is to draw a framework to regulate crypto in the country. The council has taken positive measures to legalise use of crypto in the country including appointment of Binance CEO as strategic adviser of PCC. The crypto community in the country hopes are with PCC to ease out use of crypto in the country.  

Since Bitcoin isn't banned in our country, it is easy to sell Bitcoin in our country. I mean I don't know if P2P transactions thru an exchange is still prohibited in the countries where Bitcoin is banned, but in our case, it's good that our government doesn't care about Bitcoin that much, or at least they aren't saying anything with regards to crypto in general.

As for using it for buying though, I think it's a problem because I haven't seen any establishment that's accepting Bitcoin as an alternative payment. I would love to use my Bitcoin to buy something because it's my first time to do it, but as of now, I haven't seen one. Maybe there are some who are accepting thru online payment, but I want to experience using it on physical stores. As for something that I'm planning to buy, hmmm there are many TBH, but if I will think of one, it would be Pokemon Cards.

Not specifically in my country (heck idk even if we're on the same country really) but I did buy some stuff online a few years back. Not through a private pm or something, they just had the option to pay for crypto as one of their payment methods so I went ahead and tried it. Iirc my first purchase was a customized mechanical keyboard (that broke just last year lol), and the other few that I did were just some personally hand-made merch they have (different merchants btw).

I reckon reporting it is just the same when reporting your taxes and stuff, just have to convert it to its equivalent value.

Here in Croatia, where I am right now, the rules around Bitcoin and other crypto-assets became clearer over the past few years, especially with the application of the EU's MiCA regulation. It's not banned, and there are companies that are authorized to help people buy, sell, and even pay with bitcoin. For example, there are online platforms and even physical exchange offices and Bitcoin ATMs in cities like Zagreb, Split, Rijeka, and Osijek where you can trade bitcoin (and crypto) for cash.

However, I can tell you that, while it's becoming more common, you can't yet go to just any store and pay directly with Bitcoin (there are a few, though). Usually, you'd need to use a service that converts your crypto currency into the local currency (EUR) to make a purchase.