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Is Bitcoin Halal Or Haram In Islam? In the last few years, investors have become much more interested in cryptocurrencies. In November 2021, Bitcoin, the most well-known type of cryptocurrency, hit a 5-year high. It’s easy to see why anyone would want to buy this in-demand digital cash.
But Muslims disagree about whether digital currencies like Bitcoin are halal. Islam has strict rules about money, and since crypto is so new, it can be hard to figure out how Sharia law applies to it.
How Does a Cryptocurrency Work?
Bitcoin and other crypto coins are types of digital currency that can be used to pay for certain goods and services. They can also be traded with other crypto traders.
Cryptocurrency ownership and exchange can’t be tracked, so it’s often used to buy things that are haram or against Islam. In 2018, Bitcoin worth $872 million was traded on the dark web.
But as digital currencies become more popular, more places are starting to take them. Now, businesses like Amazon, Expedia, and Microsoft take Bitcoin.
Using Bitcoin to pay for Sharia-compliant goods and services may not be against the law. But, according to a research paper, “most cryptocurrency users have a speculative motive to make money instead of exchanging it like money.” That means trading cryptocurrency is a lot like gambling: you buy crypto and hope its value goes up.
Gambling is forbidden in Islam. But what if you just want to buy crypto and exchange it for goods and services, the same way you spend money?
Some People Consider Crypto Haram Why?
3 main reasons:
- It’s an investment with a lot of risk, like gambling.
- It’s not used the same way as money.
- It isn’t controlled by governments or financial organisations.
Is Cryptocurrency Halal or Haram?
There are a few reasons why cryptocurrency could be seen as haram, but not all Muslims agree that it is.
The Islamic Finance Guru thinks that, in general, cryptocurrency is in line with Sharia. Their Sharia policy says that they see crypto as a real currency or a digital asset. They also say that Muslim crypto traders should check each purchase or project to see if it is halal or haram.
Also, cryptocurrency doesn’t make interest, also known as riba, which is against Islam. So it might be less controversial than lending money to make money at high interest rates.
Buying cryptocurrency is probably most like buying stocks and shares, but the risks and uncertainty are much higher. Because of this risk and the lack of rules, cryptocurrency can be haram.
In the end, what you do with crypto determines whether it is halal or haram. If you use it to buy things that are allowed and don’t buy it with the hope that its value will go up, this may be okay.
Islamic scholars Says About cryptocurrency:
As it stands, many Islamic scholars seem to agree that cryptocurrency is haram and that Muslims should stay away from it.
Indonesia, which has the most Muslims of any country in the world, has made it illegal to trade in cryptocurrencies. The Indonesian Ulema Council said that cryptocurrency has “elements of uncertainty and harm” and that it lacks “a physical form, a clear value, or a known exact amount.” But the government will allow cryptocurrency that follows the rules.
Dr. Anas Amatayakul, another Islamic scholar, says that Muslims should not buy or sell cryptocurrency “for now.” This leaves room for more innovation in cryptocurrency for Muslims. If cryptocurrencies were better regulated and less volatile, Muslims might be able to use them.
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