🇸🇻 Exploring El Salvador
FIRE BTC Issue #16 - Observations from a trip to bitcoin country
The Central American country of El Salvador was once considered the murder capital of the world. At its peak in 2015, the murder rate in the country was 105 per 100,000!
As a result of a brutal civil war from 1980 to 1992, many Salvadorans moved to the US, settling most prominently in Los Angeles. It was there that violent gangs like MS-13 and Barrio 18 gained in strength.
Following acts of Congress from the Clinton administration in the 1990s, a wave of deportations sent about 12,000 criminal aliens back to El Salvador. They arrived in their homeland to the residual effects of the civil war, which was fertile ground for them to take control. The gang violence grew dramatically over the subsequent years, staining the country’s reputation and weighing on its ability to grow economically.
In 2019, however, a new sheriff came to town. President Nayib Bukele rose to power and immediately cracked down on the gangs. He has faced criticism for his tactics, some of which is valid, but the results are hard to deny.
In only a few short years, the murder rate dropped to 1.9 per 100,000 in 2024, making El Salvador one of the safest countries in the world (at least related to that metric). To put that number in comparison, the 2024 murder rate in the US was 6.3 per 100,000, more than 3x higher!
Bukele is extremely popular in the country following this successful story. However, his success doesn’t end there. He has implemented other economic reforms to encourage investment and growth within the country.
And in 2021, El Salvador adopted bitcoin as legal tender.
⛳ Golf brought me to bitcoin country
The story of my recent trip to El Salvador began in June of 2024, when my colleagues and I wrote a short piece on the synergies between golf and bitcoin.
Success with both requires a low time preference, proof of work, and minimizing mistakes. You can read the piece in this previous issue of FIRE BTC:
Shortly after the piece was posted to the Bitcoin Magazine website, Max Keiser, a bitcoin O.G. who was shouting about bitcoin on CNBC years ago when it was trading at $1, asked us to help him host a golf event at his home course in El Salvador. We jumped at the opportunity, brought Unchained in as the headline sponsor, and connected our friends at Bitcoin Sports Network to run it.
The event was a huge success. Three hundred people, golfers and non-player family and friends alike, came to El Salvador to explore the country and participate in the event. An estimated 80% of them were visiting El Salvador for the first time, including myself.
Many of us stayed at the beach in El Zonte (about 40 minutes from the golf club), otherwise known as Bitcoin Beach. The volcanic black sand, rhythmic surf break, and cotton-candy sunsets makes Bitcoin Beach a truly beautiful place.
Not to mention, you can pay your way with bitcoin!
🏖️ What you’ll see at Bitcoin Beach
El Zonte is a sleepy, chill town, but that may be changing.
There are signs of development, including a 6-story condo building under construction near the beach. A US-native retired couple I met at my hotel were excited to share that they had purchased one of the units, planning to spend a good portion of each year in El Salvador. They raved about the beauty of the place, the friendliness of the people, and the community of bitcoiners in the town.
The food was surprisingly good. Fish ceviche and shrimp aguachile were my personal favorites. At one dinner, I enjoyed a salted red snapper that was caught just hours earlier off the coast. The burritos I had at a local spot in nearby El Tunco were amazing. I also tried a couple of pupusas…not something I’d want everyday, but pretty good nonetheless.
In addition to the picturesque views, El Zonte is a popular spot for surfers. There is a consistent break in the black water, and you’ve got to be a bit careful of the current.
Along the beach and throughout the town, you’ll see little shops and restaurants, run by a combination of locals and expats. Everyone is friendly, and most places will accept bitcoin as payment.
🖼️ A window to the future?
Bitcoin has found product market fit initially as the ultimate store of value asset. El Salvador now boasts over 6,000 BTC in the country’s treasury, adding more every day.
As other countries, companies, and individuals follow suit, bitcoin’s value with continue to grow, attracting even more adoption, and opening the door for its utilization as a medium of exchange. Bitcoin Beach is a microcosm of what could be possible on that front, although perhaps ahead of its time.
While in El Salvador, I paid for airport transport, food and drinks, souvenirs, and motobike rentals with bitcoin. It’s just as easy as swiping a credit card. The merchants receive money for their goods and services immediately instead of weeks later, and without a 3% processing fee. It’s like paying in cash, without fumbling around with bills and coins.
Of course, many vendors, especially outside El Zonte, responded “No” when asked “¿Acepta bitcoin?” While waiting for my flight home in the airport, I needed a quick meal. The lady taking my order at Wendy’s looked at me like I was crazy, even though a sign right next to the register stated otherwise.
For most Salvadorans, the current preeminent global money, King Dollar, is still preferable. Although both dollars and bitcoin are legal tender in the country, bitcoin has a long way to go in competition.
Bitcoin is truly global, however, and its superiority as a store of value gives it an edge over the long run. I believe we will continue to see it gain adoption across the world and expand its utilization beyond just savings technology.
In the meantime, achieving FIRE enables you to see and experience more of the world. Having global money that is liquid everywhere is a nice tool to have as you travel. Regardless, I plan to make it back to El Salvador in the future. I suggest you check it out too!
That’s it for this week. Thanks for reading!
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Until next time,
Trey ✌️
P.S. While I was visiting Bitcoin Beach, I had to pleasure of recording with Mike Peterson, who started the bitcoin movement in El Salvador. We had a fantastic conversation about bitcoin in the country, FIRE and economic empowerment, and how Unchained helps bitcoiners secure their wealth. Things really heated up when an earthquake shook the studio toward the end of our chat! Check it out below.