A look at Bitcoin’s circular economies around the world

05 May A look at Bitcoin’s circular economies around the world

Bitcoin Beach is the most famous Bitcoin circular economy and community project, but it has inspired many other similar initiatives around the world. Even since before Bitcoin Beach, there is a rich history of people trying to use Bitcoin as money at the grassroots level. Let’s take a look.

Lazlo showed that BTC could be used as money in real life

With Bitcoin Pizza Day just around the corner on May 22, it seems appropriate to start this article by mentioning Lazlo Hanyecz, and his historic first purchase with 10,000 Bitcoin and the fabled two Papa John’s pizzas.

Lazlo made the first real-world transaction with Bitcoin, which many Bitcoiners at the time saw as the much-needed official crowning of its status as a true new form of money. Ever since then, Bitcoiners, many of them led by the cypherpunk vision of building a parallel free and accessible market, have been trying to create grassroots Bitcoin economies in various places around the world.

Bitcoin Beach in El Salvador has arguably been the most successful and well-known Bitcoin community and circular economy, but it wasn’t the first. There have been quite a few attempts in the past and it’s an interesting piece of Bitcoin history to take a look at.

Many of the first attempts to build Bitcoin circular economies started small. A few like-minded Bitcoiners inspired their local bar or coffee shop and a few other merchants in their communities to start accepting Bitcoin, some employees started choosing to be paid in Bitcoin. Maybe they even had a Bitcoin ATM. It started from humble beginnings.

In a little more than a decade, there are now many different communities with significant adoption by local merchants, accepting Bitcoin and the Lightning Network as payments.

A Walk Down Memory Lane: Early Circular Economy Efforts

Room 77

Room 77 was an early Bitcoiner hangout in Berlin, Germany, which was a bar that had good food and gained fame in the early days of Bitcoin as “the first brick and mortar business to accept Bitcoin in the world”. Room 77 started accepting Bitcoin as a payment method back in 2011. One of the regulars also produced the first ever Bitcoin Android mobile wallet. The Cypherpunks visiting Room 77 also made an effort to board various merchants in the surrounding area. Unfortunately, room 77 is no longer open.

Parallel Polis

Paralelní Polis is a non-profit organization and educational space that draws inspiration from the political philosophy of Vaclac Benda, a Czech mathematician who opposed communism. Paralelní Polis has been around since 2014. It has a famous “crypto-only cafe”, coworking space, hosts an institute of cryptoanarchy, and regularly organizes educational events and lectures on Bitcoin, crypto, cryptoanarchy, encryption, activism and related topics.

Bitcoin City

Arnhem is a city in the Netherlands that is known as “the world’s most Bitcoin-friendly city”. In 2014, a few local Bitcoiners began an attempt to onboard the merchants in Arnhem to accept Bitcoin. The project started with 15 local businesses and has only continued to grow. You can now buy a wide range of products and services with Bitcoin and the Lightning Network at many local businesses.

Bitcoin Valley

Bitcoin Valley in Rovereto, Italy is the name given to a project created by Marco Amadori and InBitcoin. Since 2015, Bitcoiners in the Italian village of Rovereto have onboarded a significant number of local merchants, bar owners, hoteliers, property owners to accept Bitcoin for goods and services and even rent. For a time, they even convinced local authorities, who accepted Bitcoin for taxes. In Rovereto it is possible to get by using only Bitcoin.

Importance of Bitcoin Beach

While early attempts to create Bitcoin circular economies were definitely successful, none of them managed to capture the world’s attention in the same way as Bitcoin Beach, in El Zonte, El Salvador. Bitcoin Beach began in 2019, when community members and Mike Peterson began collecting donations in BTC for a Bitcoin circular economy project in a small surfing village on the Pacific coast of El Salvador.

The project quickly caught the attention of Salvadoran President Nayib Bukele, and became the inspiration for his historic Bitcoin legal tender law, the government’s Bitcoin office, and the new economic system being built on Bitcoin in El Salvador. Bitcoin Beach was in the spotlight and became world famous overnight. Now it is arguably the world’s most popular tourist destination for Bitcoiners.

Bitcoin Beach currently has more than a hundred businesses that accept Bitcoin, some locals earn in Bitcoin and Bitcoiners from all over the world come to enjoy the beautiful beaches and spend Satoshis. Bitcoin Beach’s wild success both domestically and internationally has inspired a bunch of similar projects around the world. Thanks to Bitcoin Beach’s Bitcoin circular economy whitepaper, they have open-sourced the blueprint, and shown some how to follow in their footsteps.

Bitcoin community that has been inspired by Bitcoin Beach

Bitcoin Ekasi

Bitcoin Ekasi is a Bitcoin community and circular economy project started by the non-profit Surfer Kids, a community service project that teaches surfing to children in Mossel Bay, South Africa. Bitcoin Ekasi has brought in several sellers in the local community and even pays some of the surf instructors’ salaries in BTC. Inspired by Bitcoin Beach in El Zonte, Bitcoin Ekasi has become the first Bitcoin community and local economy project in Africa.

Bitcoin Jungle

Bitcoin Jungle, also inspired by Bitcoin Beach, is Costa Rica’s Bitcoin community and circular economy project. Bitcoin Jungle provides Bitcoin education, resources and technology to the local community, brings local businesses to accept BTC and provides services and assistance to visiting Bitcoiners. They even have their own fork of Galoy’s Bitcoin Beach wallet, specifically aimed at Costa Rica, called the Bitcoin Jungle wallet.

Bitcoin Lake

Bitcoin Lake is yet another project that draws inspiration from Bitcoin Beach. Bitcoin Lake is located in Panajachel, Guatemala on the shores of Lake Atitlán. Like similar projects, Bitcoin Lake focuses on onboarding merchants, providing education and spearheading Bitcoin-focused initiatives. Bitcoin Lake also uses waste energy to mine Bitcoin that will be distributed to the community.

Praia Bitcoin

Praia Bitcoin is another Bitcoin beach, this one located in the Brazilian coastal village of Jericoacoara, taking its inspiration from the original. Praia Brasil has pioneered the local use of Bolt Lightning Network NFC payment cards, which children in the community use to buy fruit and vegetables. Praia Bitcoin also pays out grants in Bitcoin to community members, partners with local schools to provide Bitcoin education and onboard merchants.

Montana Bitcoin

Montana Bitcoin is located in São Thomé das Letras, Brazil. It’s a newer Bitcoin circular economy project, but they’ve gotten off to a good start working with local schools to offer Bitcoin education. They are also working on implementing a similar project to Praia Bitcoin, using the Lightning Network, Bolt cards and distributing Satoshis to children so they can buy fruit from local vendors that accept Bitcoin.

Harlem Bitcoin

Harlem Bitcoin is a decentralized Bitcoin community located in Harlem, in New York. Harlem Bitcoin organizes regular Bitcoin-only meetups, provides Bitcoin education and educational resources, and works to create a local Bitcoin circular economy by bringing in local merchants.

It is inspiring to see so many Bitcoin projects and initiatives sprouting up around the world. It only bodes well for further adoption. If you know of other Bitcoin initiatives, let us know.

Plan B Lugano

Plan B Lugano, is Switzerland’s initiative to integrate Bitcoin, Lightning Network, Tether and Lugano’s own LVGA token into all aspects of daily life. Plan B has an annual conference, offers ongoing Bitcoin and crypto education, an investment pool, grants, regular Bitcoin meetups, and merchant onboarding. Lugano’s Plan B arose from a partnership with the city of Lugano and Tether the company behind the USDt stablecoin.