Satoshi never said Bitcoin eliminates the need to trust the OTHER party. I mean think about it, you always need to trust the other party. You send me coins, I don't send you good. Oops you lose. Or you send goods, I don't send coins. Oops you lose again.
If you are going to quote the "man" at least quote him correctly.
1. Introduction
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as
trusted third parties to process electronic payments. While the system works well enough for
most transactions, it still suffers from the inherent weaknesses of the trust based model.
Completely non-reversible transactions are not really possible, since financial institutions cannot
avoid mediating disputes. The cost of mediation increases transaction costs, limiting the
minimum practical transaction size and cutting off the possibility for small casual transactions,
and there is a broader cost in the loss of ability to make non-reversible payments for non-reversible
services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of
their customers, hassling them for more information than they would otherwise need. A certain
percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be
avoided in person by using physical currency, but no mechanism exists to make payments over
a communications channel without a trusted party.
What is needed is an electronic payment system based on cryptographic proof instead of trust,
allowing any two willing parties to transact directly with each other without the need for a trusted
third party.
Without a trusted third party. i.e.
You <----> Me
vs
You <----> PayPal <----> Me
Bitcoin eliminates the need for the trusted third part (as in not the buyer or seller) it doesn't and never will eliminate the need for trust in commerce.
