I generally try not to post negative commentary, but I think there's an obvious point being missed. Even assuming this device is made perfectly, no bugs, ships on time, performs better then expected, is cheaper than projected, and looks cooler then cool... It's still going to fail.
Purchasing a separate device to use for payments (in addition to smartphone, WALLET/PURSE, ipad/tablet, etc...) is a D.O.A. concept for all but a few of us nerds.
Why would I carry around ANOTHER single-purpose device? The money/time/energy would be better spent integrating this concept into NFC/Bluetooth smartphone transactions. See how many smartphones around the world are already being used for micropayments. If you could one-up them by adding paypal, dwolla, btc, etc, you might have a viable business model.
I do think its a cool idea in a geek-cred sort of way - but global adoption? C'mon. Even if BTC became the dominant worldwide currency, you could still make a P.O.S. purchase with a QR code of your BTC address using your smartphone; or some other method using existing tech.
'Who is picking up the check for lunch today?'
'Not me, I forgot to charge my wallet!'
Sorry, but -1.
I like Matthew and he's done a bang-up job with the magazine, but I have to agree here. The key to getting wider adoption is absolutely, positively in making better software, not hardware.
I'm sure over the years, dozens of aspiring Facebook employees wanted to make a portable "facebook device", and every one of them got shot down in flames. The same reason why Palm Pilot went bust as soon as phones became small enough.
The proper way to make bitcoin usable is add it onto the devices people carry around with them already, mainly a mobile phone. I have an ipod, but I never use it anymore, now that I can put my music on my phone. I have stacks of CDs that are collecting dust, I never use them anymore, I just plug my phone into the car AUX jack.
My wallet I would love to consolidate. it's full of paper money, receipts, credit cards, debit cards, gift cards, a whole bunch of crap that needs to be consolidated and digitized. I feel like its the equivalent of carrying around a case of CDs.
I'm hoping that YC will get a great product out of piuk to solve this problem.