I owned an entire Bitcoin at one point. It went nowhere for years, and even dipped. Hell, at one point there was a "Bitcoin tap", a website giving away fractions of a Bitcoin for free to anyone.
I spent it in dribs and drabs. Other currencies came and went. I got more out than I'd put back in. I found the wallet file the other day, withdrew the last fraction.
The problem with Bitcoin is not Bitcoin, nor value. It's converting the damn stuff. My original purchase was basically giving a stranger several hundred pounds and hoping they'd send me a Bitcoin. It worked, there were reputation-based websites but some guy on some mobile phone sent me a Bitcoin and I sent him something via a Barclays PingIt account that I had to set up especially. It was NOT anonymous.
I gave parts of the Bitcoin to a handful of websites that supported such payment. Donations. Humble Bundles. Things like that. Spent most of it that way. Sure, I got value, but it was never "money".
Then to convert that last fraction out to real money? It was impossible. Trust someone at random, then get queried by your bank because they have money-laundering requirements nowadays. Try to pull out direct to a card or account, and it's blocked because certain banks will not deal with known cryptocurrency dealers or websites in any way.
In the end I found a site that would give me an Amazon giftcode for it, to the nearest £10. Again, literally sending Bitcoin to a site with no contact details and hope they send me a number of value, and that that number doesn't get flagged and/or block my Amazon account.
Basically the only way to use or spend Bitcoin is to sacrifice your anonymity and take a chance - and that chance will be reflected in processing fees just the same as the chance of a credit card company having to refund the transactions on your card because the card was stolen.
Sure, if you're willing you could have put £1000 into 1st class postage stamps and they'd be worth much more now, and still legally viable. Selling old stamps in those quantities isn't convenient or easy or without question, though.
And, sorry, but to me and others €1000 or £1000 is nowhere near beer money, and they could not afford to gamble like that (and it is a gamble). And if you were to put that same money in Bitcoin today, likely you would lose money in the same time period.
It's speculation gambling. Not a currency. It's a pain in the butt to buy, handle, convert, audit, or prove and that means at every turn you're under suspicion and up against obstacles using it. Paypal still have to abide - being an EU bank - by the same money-laundering regulations, so you sending Bitcoin to some random third-party via Paypal isn't going to be as simple as you think. Likely it would only work between authorised Paypal accounts with verified information, which basically means that the whole point of Bitcoin becomes moot, and you may as well have just used cash or card.
Bitcoin isn't a currency. It's buying some diamonds and hoping DeBeers doesn't crash or get broken up. Sure, profitable if you're right. But it's not a currency in which to put your children's college money, and using it for day-to-day usage makes it just like any other currency.
I'm a mathematician, computer scientist and programmer... I think it's an incredibly clever idea. I also think that it's also a very stupid thing to have as a currency.