Bitcoin does not work because people do not trust to buy things with bitcoin. I have a site running now for 5 months selling precious metals, made plenty of sales with credit card, bank transfer, no problems but not a single bitcoin purchase!
What is the point in bitcoin again?
Ever heard of that Bitcoin is like digital gold? There are many Bitcoin holders who see their stash as an future investment and as a store of value. With Bitcoin moving all around the globe is pretty easy. How do I do that with a gold bar?
Furthermore Bitcoin is still used by maybe 500k-1 million active users. That's not really much.