Bitcoin is Dead in El Salvador

Summary

Joe Nakamoto revisits El Zonte, known as Bitcoin Beach, to see whether Bitcoin use has kept pace with the town’s rapid development. Bitcoin branding and businesses are visible, and he pays for breakfast, lunch, coffee, and other purchases with Bitcoin without difficulty. But acceptance is uneven: some merchants across the street from long-time Bitcoin-accepting vendor Mama Rosa take cash only, even though they know where customers can spend Bitcoin. In San Salvador, a new gym accepts only cards, while a café displays Bitcoin stickers but will not accept Bitcoin.

Nakamoto argues that growth in tourism, construction, and new businesses does not necessarily mean Bitcoin is becoming more common as everyday money. El Salvador is attracting visitors for surfing and other activities, and many people he meets are there for the climate and beaches rather than Bitcoin. He also notes that some Bitcoiners who previously lived in the country have moved away.

There are reasons for optimism: merchants such as Mama Rosa still accept Bitcoin, Bitcoin events continue, and grassroots projects—including Bitcoin Berlin in the east—are developing. Visitors can spend a day using Bitcoin in El Zonte, but they often need to ask which businesses accept it and plan where to shop.

Nakamoto says the government’s backing of a payment project using dollar-backed stablecoins rather than Bitcoin reinforces his impression that the country’s original push to use Bitcoin as money has weakened. He leaves the question open: Is El Salvador turning away from Bitcoin, or is the fading of the initial hype simply what real-world adoption looks like?

Presenters and Contributors

Joe Nakamoto is the presenter. Other people mentioned include Aaron, Nakamoto’s friend; Giacomo Zucco; Scott, a Bitaxe developer; and Mama Rosa, a merchant.

Bitget Wallet is featured in a promotional segment.