El Salvador is the first country to make Bitcoin legal tender!
1. El Salvador buying 1 Bitcoin per day
El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021.
Since late 2022, the government announced it would buy 1 Bitcoin per day as a long-term strategy rather than short-term speculation. This approach reflects an orange-pilled mindset: focusing on Bitcoin as a store of value and long-term monetary asset, not a quick profit tool. The goal is to gradually build national reserves using a predictable, transparent strategy similar to dollar-cost averaging.
Volcanic Energy & Bitcoin Mining
2. Using volcanic (geothermal) energy to mine Bitcoin
El Salvador sits on volcanic land with abundant geothermal energy, which is:
- Renewable
- Constant (24/7 baseload power)
- Often underused
The government uses this clean volcanic energy to power Bitcoin mining. This directly challenges the claim that Bitcoin is “wasteful,” showing instead that it can:
- Monetize otherwise unused energy
- Incentivize renewable infrastructure
- Turn natural energy into digital economic value
This aligns with the idea that Bitcoin mining can put stranded or wasted energy to productive use.
Bitcoin in Education
3. Integrating Bitcoin into the school system
El Salvador has begun integrating Bitcoin education into:
- Public schools
- Universities
- Developer training programs
Students learn:
- How Bitcoin works (blockchain, wallets, keys)
- Financial literacy and sound money concepts
- Coding and Lightning Network development
This prepares a generation to participate in a global, digital, permissionless economy, especially important in a country where many were previously unbanked.
Bitcoin Beach (Grassroots Adoption)
4. What is Bitcoin Beach?
Bitcoin Beach started in El Zonte, a small coastal town in El Salvador. It began as a local experiment to use Bitcoin for everyday life.
People use Bitcoin to:
- Buy food
- Pay for haircuts
- Pay rent
- Receive wages
Most payments use the Lightning Network, which allows:
- Near-instant transactions
- Very low fees
- Small everyday payments
Why Bitcoin Beach matters
Bitcoin Beach proved that Bitcoin can function as:
- Medium of exchange, not just a store of value
- Financial inclusion for people without bank accounts
- A real circular economy, where Bitcoin is earned and spent locally
This grassroots success helped inspire El Salvador’s national Bitcoin adoption.
The Lightning Network (Layer 2 for Bitcoin)
What is the Lightning Network?
The Lightning Network is a second layer built on top of Bitcoin that allows people to send Bitcoin instantly and with very low fees. It solves Bitcoin’s limitation of slower, more expensive on-chain transactions for small, everyday payments.
How it works (simple)
- Two people open a payment channel on Bitcoin’s main blockchain
- They can send Bitcoin back and forth off-chain, instantly
- Only the final balance is recorded on the Bitcoin blockchain
This keeps Bitcoin secure while making transactions fast and cheap.
Why Lightning is important
- Instant payments (seconds, not minutes)
- Extremely low fees (fractions of a cent)
- Ideal for coffee, groceries, wages, tips
- Works globally, 24/7
Lightning makes Bitcoin usable as everyday money, not just long-term savings.
Lightning in El Salvador & Bitcoin Beach
- Bitcoin Beach uses Lightning for daily purchases
- Vendors accept Bitcoin without high fees
- Workers can be paid instantly
- No bank accounts required
This enabled a circular Bitcoin economy, where people earn and spend Bitcoin locally.
Bitcoin + Lightning = Two-Layer System
| Layer | Purpose |
| Bitcoin (Layer 1) | Security, final settlement, store of value |
| Lightning (Layer 2) | Speed, scalability, everyday payments |
- Bitcoin = digital gold vault
- Lightning = cash in your wallet
Summary:
El Salvador holds approximately 7,500 Bitcoin (BTC), a number that fluctuates as the government strategically buys the cryptocurrency, particularly during price dips, as part of its ongoing adoption of Bitcoin as legal tender. While exact figures vary slightly between reports, recent data from late 2025 places the holdings around 7,500 BTC, making it a significant holder among nations. El Salvador officially adopted Bitcoin as legal tender on September 7, 2021, becoming the first country in the world to do so, alongside the US dollar, following a law passed by Congress in June 2021. The move, championed by President Nayib Bukele, aimed to boost financial inclusion, investment, and remittances, though it faced skepticism and technical hurdles.
In comparison:
The United States government holds approximately 325,000 BTC (Bitcoin), a figure that surged following a major seizure by the Department of Justice in October 2025. This makes the U.S. the largest known state holder of Bitcoin in the world.