Add the chopped bacon to a Dutch oven or other heavy bottomed pot. Set over medium high heat and cook the bacon until brown and crisp, stirring occasionally. It will look watery for awhile, but will eventually begin to foam and crisp up. This will take 10-15 minutes. Remove the bacon to a paper towel lined plate and set aside.

Drain all but one tablespoon of the bacon grease from the pan, then add the butter and onions. Cook, stirring occasionally, 10-15 minutes or until the onions are softened and just starting to caramelize.

Add the bourbon to the pot scraping any browned bits from the bottom of the pan. Add the honey, then turn the heat up to high and bring the mixture to a boil. Boil about two minutes, stirring often. Add the vinegar and boil another minute.

Add the bacon back to the pot, reduce heat to medium low, and continue to cook 6-8 minutes, or until mixture is thickened and dark.