“But all of this depends on people recognizing Bitcoin to be a medium of exchange or store of value.”
It has been an incredible “store of value”.
The first recorded transaction was 10000 bitcoin for a $41 pizza in 2010. Today those 10000 bitcoins are worth around $600,000,000!
https://www.forbes.com/advisor/investing/cryptocurrency/bitcoin-price-history/
But that is the main reason why bitcoin will never be a real life currency. Because of it’s finite numbers, people would rather hoard it than spend it to buy stuff. Today, hardly anyone uses bitcoins to buy stuff. And as things stand it’ll most likely continue to appreciate.
In order for bitcoin to be a viable currency, its numbers should be allowed to increase by around 3% a year.
It’s the level of money supply growth that a growing economy needs according to Milton Friedman.
https://www.investopedia.com/terms/k/k-percent-rule.asp
And yet, it is, as the Chinese preferred way of off-shoring.
"Today, hardly anyone uses bitcoins to buy stuff."
No, just no, like hell no. Ransomware demands, stolen database transfers, PLA drug manufacturers, arms, yachts, cars, people, that list is endless.