In another thread I meantioned some of the advantages Bitcoin has over cash (
https://bitcointalk.org/index.php?topic=1113484.0)
Truth is not many people I know personally use Bitcoin. None of my friends or direct family members do and here are some reasons why I think that is.
I have provided some workarounds to most of these "downsides". Like everything in life, Bitcoin isn't really perfect.1) While Bitcoins are not controlled by an actual Government, etc, that also means that there is
no official "customer service" for Bitcoin, especially when it comes to reimbursement; If you lose your private keys you are screwed, the coins are gone and therefore your money. Doesn't matter who you buy Bitcoins from, they can't help you at that point. Some companies have made this pretty avoidable though, by just allowing a username and password to sign into your Bitcoin wallet.
2)
Not enough businesses directly accept Bitcoin. While some big name companies do accept them, overall they aren't accepted at most online and local businesses at this point of writing. There are a lot of ways around this though just because of what Bitcoins CAN buy, which can be used to trade for the item you desire. For example if a local or online business accepts PayPal but not Bitcoin, it's easy to convert it.
3)
Bitcoin can be stolen through malware, social engineering, being robbed at gunpoint, etc. Malware can certainly be avoided, you can store your Bitcoins offline, encrypted, etc. on a malware free machine/device. Social engineering is unlikely, if you are familiar with Bitcoins, you are probably familiar with social engineering. Being robbed at gunpoint can hopefully be prevented by meeting in a busy coffee shop, etc.
4)
Bitcoin is not "user friendly". With terms like "Blockchain", "mBTC", "Private Key", "Hashing", "QR Code", etc. I can see where a lot of not tech-savvy people would be discouraged. It's clear that Satoshi didn't design Bitcoin to be used by everyone.
5)
You can't pay your Government's taxes, fees, etc. in Bitcoin (at least I know in my country you can't).
Feel free to contribute to this, I would love to hear some opinions.