I'm not sure it's that big of a deal. I'm still looking for Bitcoin's killer app, and I don't think this is it. A killer app would take advantage of Bitcoin's unique properties and become preferred vs other payment methods. There isn't a clear reason for most consumers to go through the hassle/risk of BTC vs getting the consumer protection and rebates/rewards that credit cards offer.
Amazon's one-click is brilliantly easy because I've already done the work of adding my name, physical address, and credit card information into my Amazon profile, and I'm already logged-in. My browser (via LastPass/1Password) is saving my password, so the login page is almost no friction at all. With Amazon Payments, I can re-use this to quickly checkout at any number of places. Google and PayPal work similarly.
With Bitcoin everywhere as a 1-click, I still need to have my name and physical address put in, plus I probably need to create an account. Bitcoin doesn't make this process easier.
Maybe Coinbase can take this on and store my info. But isn't this just making Coinbase Checkout and almost identical to the other competing platforms? What makes it compelling to use Bitcoin? Keep in mind I'm no longer getting 1% cash back (which can be worth hundreds a year), and I'm SOL if the vendor screws me over. Plus, I might need to do the stored-value dance as Coinbase needs to ETF some additional funds from my checking account, and is just one more thing to keep track of.
Will an awesome user experience be enough? :) Plus, merchants can reproduce this UX by integrating Paypal, or perhaps Venmo in the future. The user experience is not a fundamental advantage to bitcoin.
It absolutely is. If I want to send money to my mother, who lives in a different country over 6000 km away, I have to go through absurd steps in order to do so. International money transfer. Western Union. Physically walking cash to some counter. If bitcoin is useful for her, I can just send her bitcoins.
Paypal is frustrating; I have to make an account, she has to make an account, I have to fund my account, and to top it all off, Paypal can (and does!) refuse to transfer money sometimes. Absurd!
This personal touch is the foundation of all that makes bitcoin worthwhile, in my opinion. The network is established and I can use it to send value to another individual or company, without going through any other intermediate. This is absolutely huge, in the same way that email is an easier way to send a message (instead of making a phone call) is absolutely huge (for email).
People may choose to use services (like Coinbase) to make it easier, but they don't have to.
There's the additional benefit that nobody owns BitCoin, so every corporation that doesn't own a payment system can collectively back it as a standard.
Think the Internet, vs. all the proprietary networks at the same time (Microsoft, Compuserve...)
I am waiting for an insured bitcoin bank. One that is as easy to use or easier to use as debit credit or even better paypal. I only use paypal because it is just so friggin easy. Login, done. No sharing through third party, no typing numbers, no getting my physical wallet out, just easy.
Unless the buyer and seller are using the same online wallet, won't the user still end up copying and pasting base58 strings between browser tabs and clicking on "confirm transaction" buttons? This is a very unusual UX.
In the context of e-commerce, I already have to provide a lot of personal information. So now it's credit card number (which may be autofilled + CVV2) vs string pasting into wallet. Based on current UIs, I think it's a coin flip on that one. Maybe browsers can improve cross-wallet management.
I was speaking about this article and the root comment. Overstock is almost entirely physical goods, and I'm skeptical that this has a meaningful impact on Bitcoin as a whole.
But your point stands re: digital goods. One use case I was thinking Bitcoin might be good for is micropayments of content. Replacing paywalls with a one-time fee to view the article or get access to the whole site for an hour/day/week. Cookie the browser with no registration. May be ideal for porn.
The challenge, aside from the lack of users that have Bitcoin, is that people don't like getting nickel and dimed. Sites may not adopt it because they can get more money from fewer users paying more on monthly subscriptions, versus more users paying less for one-time transactions.
