You mean Fiat? It’s not really that complicated, unless your country is anti- , definitely you have to take the long route in such cases, unless you can just spend your Bitcoin inform of P2P [not exchange/swap now].

So far the end result is expected to be fiat.. nothing can be done. They are 2 different things that can’t co-exist. It’s either you spend direct Bitcoin or you spend direct fiat.

C.exchange already bridged the gap between most of what you listed if that’s what you want but it’s at the cost of taking custody and submitting KYC which will generally cover both Crypto and Fiat..

It’s not that much of a problem for me, if you can’t get real person that want bitcoin in exchange for fiat, there are a lot of p2p platforms that are willing take crypto for your preferred fiat currency.

Yea liquidity can be a problem if one is dealing with very high value of assets in coin but there an also reputation platform with high liquidity that can handle what ever amount you’re dealing.

Maybe why people haven’t thought of it as a big problem is simply because it’s actually not a problem. Crypto particularly bitcoin has just being serving me as alternative money and I never had issues with converting to my countries fiat.

Most complications are due to governments throwing up massive regulatory walls the moment you try to touch fiat.

That is literally the whole bottleneck... and it is not a tech problem.  Remember back in like 2018-2019 when you could just meet some dude at a coffee shop... or just send a bank transfer... no need to ID yourself, upload utility bills, and submit your blood type to three different exchanges and banks? Good luck doing that now without having your account frozen on sight by a risk algorithm.

Tbh, any new team trying to build the "ultimate exit layer" these days is just going to get run straight into the wall if they dont find a way to do fully-decentralized/localized P2P cash settlements that cant be shut down... but then, scaling that on a global scale would be close to impossible.

I still don't understand what you mean by converting bitcoin to usable money when you can still use bitcoin for buying and selling as a digital currency, it's also serve as a unit of account because it has value and this also increases with time, money is not complicated in any country rather than the way the interpret bitcoin revance to themselves and the world, while the standard protocol still remain concerning the Bitcoin network.

I don’t entirely agree with you because it makes no sense to move away from Bitcoin and go back to fiat money. Bitcoin has so many strengths that it just doesn’t make sense return in fiat.
However, there are plenty of ways to use Bitcoin without cashing out, and certainly without doing it in the worst possible way, such as via cex like Binance and Coinbase. The best option is to use services like bitrefill with low fees, allow you to use Bitcoin anonymously and now, with the ark implementation, you can connect a lightning network channel for even greater speed.

It only becomes difficult if crypto is banned or has some legal issues within the country they reside. I don't think that it's difficult for most countries. Because if so, then all of us are complaining how difficult it is but it's not.

Not a big problem. There are p2p markets that you can trade and convert with other user and it doesn't require a lot of privacy and kyc. And bitcoin serves its purpose as an alternative to the banking system, we hold it as an asset and as a currency just like what the banks do to us.

People can use bitcoin as a currency but know that its not happening to all countries as there are only limited countries who legalize bitcoin as a currency, and even in countries where they can be considered crypto-friendly, still the merchants accepting bitcoin are still limited. That's because despite of country's legalization, the government is still throwing stone to crypto, particularly bitcoin, and create strict rules and regulations towards bitcoin transactions.

Another thing is, people themselves do not want to spend their bitcoin, why spend when they make huge profits from buying and holding longer.

Oh baby I guess you should be welcomed to the bitcointalk forum first and then I'd say you threw a very tendered question which should be coming from a newbie.
You're welcome.
Bitcoin transactions is only border less meaning you can process financial transactions through crypto transactions and the block chain network because, the monetary core system and technologies is built decentralized which doesn't need a third party to authorize your transaction unlike it's done in the traditional and banking system.

If the USABLE MONEY you  mean is CASH, then you must know that the exchange platform have to go through obtaining license and legal permission before they can offer their services in the regulatory regions.
Some governments naturally dislike bitcoin or cryptos because they can't get rid of it's total control. Some countries have very flexible crypto rules which allows the crypto user's in that country easily navigates their transactions between the fiats and crypto currencies with some with tight rules also make it difficult for the people.
USABLE MONEY in the other way too, if I may remind or let you know, bitcoin or Alt coins are financial value on their own digital, volatile snd decentralized modality with the potentials to hedge values against Inflation. It's also a purpose that provides alternative means of making financial transactions whether to pay for goods and services as the fiats or serves a potential digital assets.
So it's not just uses being Crypto.

And Bitcoin IS an alternative to Banks.  I own it and I can use it, Bank free.

Some people had under expectations, others had way too many.  If some body hoped for a movie like event where every body suddenly leaves Banks for Bitcoin and Banks have no choice but to die in front of financial sovereignty, these were simply childish dreams.  We are all way too deeply linked to the Fiat system to be able to escape it this easy, but Bitcoin, Monero and the likes do offer an actually viable alternative even if it is not becoming a 'legally adopted' variant of a Currency like others expected in the past.