Bitcoin circular economy

A local or online economy where bitcoin is earned, spent, and re-spent as money rather than only held, so it keeps circulating between people and merchants instead of leaving the bitcoin economy. Examples include Bitcoin Beach (El Zonte, El Salvador) and Bitcoin Ekasi (South Africa).

Circular economies depend on bitcoin staying in motion. Spend-and-replace is the individual behavior that keeps the loop alive: more spenders give merchants a reason to accept bitcoin, and more merchants give holders more places to spend.