People have to **USE** Bitcoin or Bitcoin dies...until you can directly exchange Bitcoin to currency this will just be an elaborate hoax.
The ease of exchange is not nearly the only problem with BC. Let me list a few others:
1. Deflation. Because there's a set cap on the total amount of Bitcoins that can ever exist (made worse by the fact that it is possible for coins to disappear permanently, limiting the supply even more), the currency is by nature deflationary (this does not however mean that it cannot go down in value but I'll get to that later). Deflation is of course good for those who use BC for investment/speculative purposes, but very bad for anyone wanting to actually use it for trade. For the consumer, having currency that looks like it will be worth more next week than now does not really encourage spending in any way. Pricing is difficult as hell because of the deflation since you have to keep adjusting prices down because of the deflation (and people have to convert the amounts to standard currencies anway, because saying something is worth "0,02 bitcoins", doesn't really tell you anything unless you go and check how much the current rate is)
2. Useability: let's be honest: what's the one thing people use BC for at the moment in addition to speculating? Paying for suspicious goods or services online. And I know there are other things you can get with bitcoins as well, but the main reasons people exchange their regular currencies for bitcoins is because even though BC is not anonymous (unlike some people think), it's the closest/most used equivalent we currently have for cash in the online world, making it the currency of choice for those who want to order something which they do not want to get caught buying (not just drugs btw, gambling is also a big thing with BC).
Now, these two factors are entwined: currencies only have value because people expect that they will be accepted (ie. retain their value) later on. In the case of bitcoin, the reason the value has shot up as fast as it has, and what makes it so lucrative at the moment for speculators, is the 'quasi-anonymous' nature of it - and services such as silkroad. That is to say, in a completely hypothetical scenario wherein drugs would become legal to buy and sell online using 'old fashioned' currencies the price of the BC would likely plummet fast. Now, while such a scenario seems rather unlikely, it's just meant to show how dependent BC currently is on such sites/services. For reference, this is what happened to the exchange rates of bitcoin when silkroad was closed. Which gets us to the third point:
3. Volatility. Right now BC has been fairly steadily increasing in value, as people have become more interested in it, but there is no guarantee that this situation will continue. In fact, looking at the rather massive increase in value and comparing it to a classic model of a bubble (got the links from a recent BC story and its comments here on /. but unfortunately I no longer remember the original poster) one cannot help but to wonder how long it will keep rising before it eventually comes down. How hard and how fast it will come down is another question, and I'm not saying it will necessarily crash and burn over night but there is no reason to assume the rise will continue indefinitely. If the early adopters start dumping their coins, if more popular BC based sites are shut down by the officials, or if someone develops a new, more anonymous/easier to use 'online cash' type of currency or a number of other things happens BC will lose its value quickly.
You're right, people need to use bitcoin or it dies, but the essential question is: would you be confident in having large sums of money in a form which makes it very hard to predict how much it will be worth in a couple of months, and with which you can buy hardly anything outside certain online products and services, and even in those the only benefit you'll get from using bitcoins compared to regular currencies is that it makes it harder (but not impossible) to trace the purchase to you. Even if stores started accepting BC at large tomorrow, I'd still prefer to do my shopping in Euros because it would be easier, and even though regular currencies are by no means stable either all the time, I have more faith in government backed currencies maintaining their value in the long run than in Bitcoin.
Bitcoin is not a total hoax, because it does have its uses. Nevertheless, looking at the way it is build and its current state, it's closer to a pyramid scheme than an actual working currency model.