Now, plug in that bit-coin wallet into a unsecured computer and within 5 seconds your account could be drained and there is no way for you to ever recover your money. Your PC and wallet might be secure, but you have literally no way of knowing that. Worse yet as soon as large numbers of people start having a few thousand $ worth of bitcoins zero day attacks are going to take on a hole new meaning.
PS: I don't do online banking or use a debit card, the entire system is horribly and fundamentally insecure. But, I only need to pay off my CC every month and suddenly I have near total safety. Or, I can walk up to any ATM and suddenly have total anonymity at the cost of some risk.
PS: I still think Bitcoins are an interesting idea. I am just describing why their adoption has been so slow. There is simply no compelling reason for significant legal transactions to use Bitcoins, which covers for their inherent risks.
This is a baseless statement.
I, for one, don't want my bank controlling my money supply or telling me how I can and can't spend it.
And my claim is hardly "baseless". You can reject the orthodox views but please don't claim to be in the majority -- whether we use the polite term "heterodox" or the less polite "crank" the fringe nature of such views is apparent.
You could have a bank account where the bank claims no liability if your debit account was emptied by a hacked chip+pin reader - they just wouldn't have many customers!
Similarly a bank could decide to offer a bitcoin account where it will offer you the option of a chargeback. It will simply charge a commission on the transaction to cover itself.
Merchants would have never come up with that on their own. It was forced on them with credit cards by consumer protection laws. Debit cards don't have that legal requirement, but consumers have come to expect it.
PS: I am not going to sue if some random website fails to ship a 200$ graphics card. So reputation becomes even more important, but only because fraud will also become far easier.