This is the one question that I've never seen clearly answered in these threads. Let's say I have 100,000 bitcoins. Where do I go to cash them in? I don't want to hear that I don't need to cash them in, but rather I can just use them to buy stuff directly. I want to know if there is a way to directly convert them to cash, no matter the amount.
Yes, there are many ways to exchange bitcoins into various currencies.
There are "exchanges" that allow trading, but this is typically best left to the big boys. examples: bitstamp, mtgox, btc-e, and many more.
There are sites like Coinbase.com that allow you to connect your bank account to buy and sell bitcoins. If you buy bitcoins, they simply debit your account. If you sell them then they'll credit your account.
You can use localbitcoins.com to meet up with people to do face-to-face transactions.
You can use sites like gyft.com and egifter.com to buy gift cards from hundreds of different merchants.
ETA: Just yesterday saw the release of the first bitcoin ATM. It's in Canada: http://business.time.com/2013/10/30/worlds-first-bitcoin-atm-launched-in-canada/
This post was edited on 10/31 at 1:07 pm