The Next Phase of Hyperbitcoinization

This is where Bitcoin is used as the primary medium of exchange, store of value, and unit of account within a self-sustaining economic loop.

Individuals, businesses, and organizations all use Bitcoin for transactions, reinvesting it back into the system rather than converting it to fiat.

The goal is to create a closed or semi-closed ecosystem that reduces reliance on traditional financial infrastructure and promotes Bitcoin's adoption as a functional currency.

Here’s how it typically works.

Earning Bitcoin - People receive Bitcoin as payment for goods, services, or labor. For example, a freelancer might get paid in BTC for their work.

Spending Bitcoin - Those same individuals or businesses then use Bitcoin to purchase goods or services from others within the ecosystem, like buying coffee from a café or web hosting from a host that accepts BTC.

Reinvestment - Businesses accepting Bitcoin use it to pay suppliers, employees, or other expenses, keeping the BTC circulating rather than cashing out to fiat.

Hodling as Savings - Excess Bitcoin might be held as a long-term store of value, leveraging its deflationary nature because of the fixed 21 million supply cap.

There are already several establish and up and coming circular economies.

Here are a few to check out.

Bitcoin Beach (El Zonte, El Salvador)

• Location: El Zonte, El Salvador
• Started: 2019
• Description: Initiated by an anonymous Bitcoin donor and led by Mike Peterson, this coastal village became the first widely recognized BCE. It inspired El Salvador’s adoption of Bitcoin as legal tender in 2021. Over 100 businesses accept Bitcoin, and locals use it for everyday transactions, remittances, and savings. It’s a tourist hotspot for Bitcoiners and hosts initiatives like Hope House for education.

Arnhem Bitcoin City (Netherlands)

• Location: Arnhem, Netherlands
• Started: 2014
• Description: One of the earliest BCEs, starting with "Bitcoin Boulevard" events. It grew into a city-wide initiative with widespread merchant adoption, showcasing Bitcoin’s practical use in a developed economy.

Bitcoin Jungle (Costa Rica)

• Location: Dominical and Uvita, Costa Rica
• Started: Around 2022
• Description: A grassroots initiative in southern Costa Rica where businesses and individuals use Bitcoin, focusing on financial sovereignty in a region with growing expat and tourist interest.

Bitcoin Ekasi (South Africa)

• Location: JCC Camp township, Mossel Bay, South Africa
• Started: Early 2020s
• Description: An informal settlement where Bitcoin is used for transactions and education, empowering an underserved community with peer-to-peer finance.

Isla Mujeres (Mexico)

• Location: Isla Mujeres, Mexico
• Started: Noted by 2025
• Description: Associated with efforts like BTCisla, this island is part of a growing network of BCEs in Latin America, focusing on local adoption.

Starting a Bitcoin circular economy

Starting a Bitcoin circular economy (BCE) involves creating a local ecosystem where Bitcoin is adopted as a primary medium of exchange, unit of account, and store of value among individuals, businesses, and organizations.

Start by assembling a small, passionate group of Bitcoiners in your area. If you have local Bitcoin meetup, start there and focus on education for individuals and businesses.

This is not an easy task but a worthwhile one. Reach out to any of the X accounts above to get help with how they did it.

If you are intersted in learning more, reach out and would be happy to help.