Is Bitcoin Halal? How Cryptocurrency Conforms with Islam and Sharia
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As a Muslim, this was probably one of the first question that stopped me from investing or jumping in to Bitcoin and Is bitcoin trading halal world. But I could not stop on thinking about Bitcoin. As, this was probably my shortest route to becoming Millionaire. We will continue to learn. Bitcoin itself is not Haram at all. So far, as you can see it is probably more Islamic that any other fiat currency issued by is bitcoin trading halal backs who are often backed by interest based instruments.
Unlike conventional banks networks which use private ledgers where there's no guarantee that the originator actually owns the underlying assets, Bitcoin guarantees with mathematical is bitcoin trading halal that the originator of the transfer owns the underlying assets.
Modern sovereign currencies are based on debt with usury - this is strictly prohibited in Islam. Therefore, all modern money is not halal. Bitcoin, on the other hand, is not based on debt - it's based on a proof of work - and this is at least not Haram impermissible.
Scholars and researchers who has spoken on Bitcoin, agrees that Bitcoin as a payment mode is Halal. Malaysian fatwa religious opinion council, adding that bitcoin is not suitable to be used as currency because there is an element of extreme speculation, and lack of authoritative body. However, those who knows Bitcoin, also knows that Bitcoin is not based on speculation. It is purely based on Is bitcoin trading halal advancement, supply is bitcoin trading halal demand. I personally, think that after a year or two large stake holders will be finished with their store of Bitcoins and then there will be a smooth market and the volatility will vanish which will even further is bitcoin trading halal Public confidence, something scholars has complained about.
Which also means that this Malaysian fatwa religious opinion council is a temporary argument and does not hold much weight. What is impermissible today can not become permissible tomorrow.
As a Muslim, Islam is very important part of my life. In fact it is life. So, these are just my understandings and must not be adopted as practice. I certainly do not wish to see you on the day of judgement holding me accountable for misguiding as that is not the purpose here. I just shared, what I learned. Is the trading of Bitcoin and other cryptocurrencies halal? Seriously, those Cryptocurrency charts are very much tempting. What I have learnt so far is; Bitcoin itself is not Haram at all.
It even goes beyond Islamic finance at the moment. Authors get paid when people like you upvote their post.