100% agree. The hodl culture is very detrimental to the adoption, however, it can be overcome with time.

That said, I think the main issue when it comes to adoption is that in many countries if you ask someone to spend bitcoin, you are bascically asking them to perform an illegal activity unless they report the gain/loss from that purchase to the tax office. And let's face it, who'd bother reporting a gain on the spent bitcoin while buying a coffee to the tax authority.

In my opinion, this is the biggest issue. That is why the usage is limited because as much as we might not like it, most people do follow the law and are afraid of getting into trouble.