Problem: Bitcoin is not idiot-proof.

The advantage that the current system has over Bitcoin is that it's idiot proof. Bitcoin are only useful to nerds, to the rest of humanity they are sadly too risky. This is not an issue that is truly impossible to remedy, but it is nonetheless a big issue, and it remains to be seen whether it will be solved.

Let's walk over the problems, shall we?

-Grampa install a new screensaver he found in his email inbox, from an email address he doesn't recognize. The next day he notices his Bitcoin have been transferred to an address he's unfamiliar with. His life savings are wiped out, and Grampa goes back to fiat currency.

-David has all his money stored on his computer. On a Friday night someone breaks into his home, starts up his computer, transfers all his Bitcoin to his own account, and leaves. The money is gone, and David can't pay for anything. David goes back to fiat currency.

-Stacey simply forgot her password, and frustrated goes back to using fiat currency.

If Bitcoin is going to work, you're going to have to figure out a way to make it safe for people other than men who have their hair in a ponytail and work in IT departments. The reason more people are not jumping in right now is because they realize they're too stupid for it, and they're also afraid of looking stupid to their peers if it doesn't work out. You have to be a nerd to understand it, and the one thing nerds are bad at is figuring out how to include non-nerds.

So, the solution might be online wallets, run by central institutes that figure out how to prevent idiots from losing their life savings, prohibits them from withdrawing or sending more than 1000 dollar worth of Bitcoin a day, calls them up when someone tries to withdraw large amounts, and if things still go wrong, is willing to pay out to people who lost their savings.

The problem is that online wallets have a bad reputation among Bitcoin users, because we only hear about them when they get hacked and everyone who stored more than 50 Bitcoin loses his money. These online wallets are not safe, and with so many scandals it will be incredibly difficult to convince Joe Sixpack to put his money on an online Bitcoin account that prevents him from sending 50 Bitcoin to Satoshidice when he's drunk again.

Hence, my question to you is: What should be done about this? Can this issue be remedied? Bitcoin would not be the first time a good idea fails to work out because it's too difficult for normal humans to use.