I agree. But are you saying bitcoin to cash and vice versa is also a bad idea?
that is a bad idea. I'm not going to take a plane to wherever you're located to give or take some cash. or trust that cash in the mail will reach its destination. As an additional service this is of course wonderful, though not as important IMO.
Gotcha. I agree. In addition to that using more "permanent" methods of payments like wire transfer or money orders would be a viable solution.
Wire transfer and money order would have higher transaction costs. I personally believe it would be really cool if nearly every major population center had at least two people that exchanged bitcoins for fiat currency and vice versa. Imagine just giving "Joe" a call and stopping buy and converting $50 to bitcoins. It would be almost as convenient as doing it all electronically (ie with PayPal and other payment processors).
I live in Canada so I am thinking I may allow people to buy bitcoins with something called "e-mail money transfers" http://www.interac.ca/consumers/productsandservices_ol_eTransfer.php
The sender pays the fees, and the whole transaction is non reversible.
Btw, any Canadians around here?