Even more frictionless than this PayPal model is using Fiverr. I know you don't get the big names on there, but they have some amazing unique stuff on there making you wonder how they produce it for $5 (custom videos under a minute). I agree there is a lot of crap on there, but the top rated stuff can be gold.
disclosure: I am one of my projects is videolla.com - its one of the biggest online video marketplaces. We can share some interesting stats on this. Yes, most of smart sellers sell for under 5 bucks. Its doesnts make much difference in you charge $3-4, anything that under 5 is about same conv. rate. if you are more greedy results will be lower.
and yes paypal is killing it! Its our default payment method and most of buyers prefer it, since they know that its safe.
Because it defeats his point, everyone has paypal, nobody has BTC. In order to acquire BTC, you have to go trough custom (less reputable) payment services with your credit card because IIRC you can't even use PayPal to buy them.
And on a more theoretical basis - because IIRC 1M$ of BTC purchases would raise BTC value to 10$ according to MtGox stats (I'm assuming that's the major trading market). Double that, quadruple or even multiply by 10, if there are more coins not listed at MtGox but available below 10$, it's still pocket change, probably what those comedians made from video sales alone. When comedy video sales causes your currency to swing 100% in value that's not a currency, that's a toy. It's a shallow market - because nobody is using it, arguably - nobody is using it because it's volatile, and volatility is the result of the shallow market, catch 22. So, while bitcoin is a great technical accomplishment, practically I don't see it taking of anytime soon.
It is very easy to pay some dude 1 BTC. It is laughably easy to setup a bitcoin account at one of those wallet site. It can be very fast to acquire bitcoin if you're willing to pay the premium.
