A scholar declared that Bitcoin was halal in April. How has the relationship between BTC and Islam evolved?
I think that crypto-currency is little bit different, it's not stored in banks, I can keep it in my machine, and trading purposes I had to store my coins in a website then for every exchange there's some fees, these fees differ from one trading platform to another. The fees may be composed of:. This post about bitcoin in islam is quite interesting if you want to read more about the subject 1.
Bitcoin is not a traditional note based currency but similar to commodities like gold, silver etc , some would call it a cryptocommodity which is indeed intrinsically accountable and can be proven to exist if required. Other currencies like notes are impossible to trace intrinsically and are essentially contract papers whereas a bitcoin stores the entire transaction history under the larger bitcoin framework.
Islam requires accountability of the commodity spent and you just cant duplicate currency notes to fulfill demand like how govts do with paper currency. Inbuilt Accountability of bitcoin allows the bitcoin commodity to be traceable and thus cant be duplicated on demand.
Far from haram I would say that bitcoin is the currency best suited according to the laws of Islam which required the currency to have intrinsic value not just a signed piece of paper whose value can be lost due to various circumstances. The best thing about bitcoin is that it is not controlled by central banks and the bitcoin you possess is the actual "coin" which was virtually mined. So it does have an intrinsic value which is nothing but proportional to the difficulty to mine it.
This is similar to how difficult it is to mine real gold. Also, real currency which Islam allows is deflationary in nature that i. Whereas in the paper currency its inflationary as more notes a printed to keep up with the demand thus reducing the value per note. The total number of Bitcoins also are limited to a few million hence its value will always rise.
Thus I would even go on to say that using bitcoin is more halal then using currency notes supplied by the reserve banks. The value of a currency is not fixed. The value may go up or may go down for many reasons in the view of other currencies.
If you buy a currency with another one and the value of the currency that you bought raise it means that you gained profit. Some persons may not like that people use the currencies that governments cannot see and trace it. Bitcoin can be in ownership of a person and that person can decide what to do with that.
Trading in some cases is not halal. When trade something that is not halal like buying goods that you know they are stolen. When the result of trading damages the Islamic society and you may know about it Ayatollah Shirazi and his verdict against tobacco. When the trading is result to riba gain that is not halal. For example if someone gives another person amount of money and sell a goods like a chocolate for it's interest of the money that he gave the other one and the one who got the money in the debt of the first one for the money and the chocolate that he bought it is riba.
As gaining profit in forex is halal if you gain profit from the raising value of bitcoin that you have you gain a halal profit. If you are shia you must remember you should pay your Khums as the bitcoin is in your ownership and you must calculate the value of those amount of bitcoin that you have.
Bitcoin does have intrinsic value as it is based on proof of work value , therefore I see it as halal except of course if charging interest. In fact, as I understand it, the blockchain is technology that records proof of work. Bit coin is the virtual currency so how is it halal? I also opened an account for bit coin but i need to pay dolor to buy bit coin and it will only show me number of bit coin in my account rather i get it in physical form.
So such trading is not as per Islam. Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs. Listen now. Home Questions Tags Users Unanswered. Asked 5 years, 5 months ago.
Active 1 year, 8 months ago. Viewed 42k times. The fees may be composed of: Fees for exchange which are imposed by the currency. Fees for the website to keep the trading platform running. Sakib Arifin 3, 2 2 gold badges 12 12 silver badges 44 44 bronze badges.
This is interesting. I've never heard about it before. I found the bit-coin forum. Yes, I believe that is what he is saying. How do you explain 5pillarsuk. Bitcoin is a currency. You can trade any currency for any others and this is halal. Loghman Loghman 3 3 bronze badges. Amq Amq 1. Are you getting your salary in cash AFAIK what you describe applies for any other currency no matter if it is virtual or real! Related 3. Hot Network Questions. Question feed.
Some Are Skeptical of the Effect of the Declaration
Is Bitcoin halal or haram? Blossom Finance publishes working paper on the permissibility of Bitcoin, cryptocurrency, and Islamic finance and concludes that bitcoin qualifies as Islamic money, except where banned by local government, but cautions investors against speculation, ICOs, and investment schemes. The paper concludes that Bitcoin fully meets the definition of Islamic money under certain conditions and is generally permissible under Shariah. The working paper is publicly available ibtcoin blossomfinance. Shariah law is a set of rules followed by Muslims in accordance with the guidelines of the Quran and teachings of the Prophet Muhammad, peace be upon .
Islamic law committees
Bitcoin is one of the most trending topics these days, that everyone wants to talk about it. But many Muslims have been confused about the fact that Bitcoin is even Halal or cryptocurrency is halal in trading or not?
Then we decided to answer your question. Before writing this article I have read numerous publications and fatwas to bring a solid answer to you. Cryptocurrency mining and bitcoin trading are on its top because it is giving much better payback than any other investment. Things which we hear about it is that it will multiply your money as well as you can just simply put your money in and it will be one of the most secure investment ever.
Another reason this is not Http://trackmyurl.biz/what-changes-difficulty-in-bitcoin-6101.html and is cryptocurrency exchanges in south korea Halal that there is no link to bitcoin with Interest, in Islam, the Interest rate has been prohibited.
It is Interest rate that is strictly prohibited in Islam but not Trading. But trading where the interest rate is involved is Haram. But in this case, bitcoin is not linked to anything such as interest rate so it is fine and Muslims can invest in Bitcoins as. People often ask if Bitcoin does not include interest rates then how is it multiplying with such great intensity.
The answer to this question is that the production of it is very rare and earning a single bitcoin takes a lot of hard work as well as you can get it after a huge investment, which can be one of the best forms of trading.
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