Michael Peterson from Bitcoin Beach
If you’ve ever wondered whether or not a society or community that is completely running on Bitcoin would work, then this is the episode for you. In episode 16 of the Go Full Crypto podcast, Mrugakshee and I interview Michael Peterson, the founder and director of Bitcoin Beach. This was a fascinating podcast because we managed to cover several of the nuances that make this story special. From Michael’s own story with cryptocurrency and bitcoin, to how El Zonte, A.K.A Bitcoin Beach got started.
El Zonte; Bitcoin Beach
The beach and community is known as El Zonte, around the world, it is known as Bitcoin Beach. That is because there is a group of bitcoin enthusiasts and entrepreneurs working to build a self sufficient community that runs on bitcoin. On the surface, this idea seems crazy, and infeasible for several reasons. Michael had to battle these notions of condescension, as well as face as real logistical issues with started a bitcoin based economy in El Salvador. Some of the problems that Michael and his team faced are the following
Rising Bitcoin Transaction Fees
Technical Knowledge Required for Sending / Receiving Bitcoin
Bitcoin Wallet Safekeeping and Backups
The Anonymous Donor
Bitcoin Beach is actually made possible through an anonymous donor. It is this donor that has supplied the bitcoin that is injected into the economy. For example, during the beginning of the COVID-19 pandemic, Michael and his team distributed $50 / week to the members of the community so they could make it through the storm. Normally, things like the electricity bill, and other utility payments would need to be made in person. Since the Bitcoin network is completely digital, people in El Zonte started to be able to pay these bills without leaving their home. This is actually a massive success when considering the ramifications of leaving your home during the pandemic.
A Bitcoin Startup Environment
One of the reasons why citizens of El Zonte were able to pay their electric bill was because a third party was handling the FIAT payment. This company is part of a growing number of local bitcoin experts that have taken an enhanced interest in a bitcoin based economy. The citizens are realizing the potential of the technology and have started taking advantage of what it has to offer. Groceries can be bought with Bitcoin, and Electricity bills can be paid with Bitcoin. This is just 15 months into the whole experiment of El Zonte.
Go Full Crypto Trip to El Zonte
When the pandemic is all over, Go Full Crypto has promised to go to El Zonte. It would really warm our own hearts to be able to contribute to this micro economy based on Bitcoin. We have a massive appreciation for Michael Peterson, the anonymous donor, and everyone who contributes to the Bitcoin beach. This experiment proves that a bitcoin based economy is possible on a small scale. Now, when others try to implement bitcoin economies around the world on a larger scale, they will have resources that will inform them how to solve similar problems.
Listen to the Episode
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