I recently paid for some local tacos using Bitcoin. My friend who was unfamilar with Bitcoin thought it was strange, like I technically didn't pay for them or something. We got into discussing Bitcoin and one of the questions he asked me was:
"Why would you want Bitcoins instead of cash?". For a second I didn't know what to say; then I thought about it and here is what I came up with. Feel free to contribute to this.
-snip-
Don't mind your friend. The majority of humans are ignorant sheeps that have no mind of their own. They can not think outside of the set up rules, and it will be very hard for them to realize how good Bitcoin is and all its potential. I've encountered this on several ocassions and it pretty much happens with technology as well.
You should get yourself very well informed about the situation in Greece and the one in Cyprus last year. Then you could explain to him how the government would have not be able to steal the peoples money if they had been using Bitcoin before it happened.