The question is who's liable when the theft occurs. In the CC world, the liable party isn't the card holder or the CC company, but the merchant. Chargebacks m

The question is who's liable when the theft occurs. In the CC world, the liable party isn't the card holder or the CC company, but the merchant. Chargebacks make services where money is transferred from one person to another extremely difficult to operate. Your service will be eaten alive by fraud unless you invest heavily in fraud detection, ratchet it up to the max, and hope that you have the volume to cover the attacks that still slip through. This is, in part, the recipe that leads everyone to hate PayPal. In the BTC world, however, there is no risk to the service. There's no need for a fraudster to even use the service: if they've stolen someone's BTC private key, they already have the money.