It makes sense to define a specific environment; also parts should be separated by blank lines rather than by \item.
A big advantage of using conversation is that you can change the spacing parameter acting at a single place.
\documentclass{article}
\newenvironment{conversation}
{\list{}{%
\setlength{\rightmargin}{\leftmargin}% what quote does
\setlength{\parsep}{4ex}% more spaces between paragraphs
}\item\relax}
{\endlist}
\begin{document}
With \texttt{quote} and \verb|\item|:
\begin{quote}
\textit{\textbf{User:}} ``hi''
\item \textit{\textbf{user2:}} ``hi''
\item \textit{\textbf{User:}} ``blah blah''
\item \textit{\textbf{user2:}} ``blah blah''
\end{quote}
With \texttt{conversation}
\begin{conversation}
\textit{\textbf{User:}} ``hi''
\textit{\textbf{user2:}} ``hi''
\textit{\textbf{User:}} ``blah blah''
\textit{\textbf{user2:}} ``blah blah''
\end{conversation}
\end{document}

A different approach exploiting \item is to define a \speaks command:
\documentclass{article}
\newenvironment{conversation}
{\list{}{%
\setlength{\rightmargin}{\leftmargin}% what quote does
\setlength{\itemsep}{4ex}% more spaces between paragraphs
}}
{\endlist}
\newcommand{\speaks}[1]{\item\textbf{\textit{#1:}}}
\begin{document}
\begin{conversation}
\speaks{User} ``hi''
\speaks{user2} ``hi''
\speaks{User} ``blah blah''
\speaks{user2} ``blah blah''
\end{conversation}
\end{document}
As shown, you have more liberty in adding or not blank lines. Using \speaks allows for lighter syntax.
\addtolength{\itemsep}{5pt}help? Are you using thequoteenvironment or aquotepackage? I don't know a package namedquote– Jan 19 '19 at 10:29