The concept of whether Bitcoin is halal or haram is not an easy one to resolve. In recent years, there has been a heated discussion about whether Bitcoin is haram or not. There are some who consider Bitcoin to be halal while others consider it to be haram. According to the latest scientific interpretations that the widespread use of Bitcoin is halal, while trading, gambling and loans are haram.
Why is Bitcoin considered haram?
The reason why Bitcoin is generally considered haram for that so far there is no legitimate government entity that has adopted the cryptocurrency and that its value is only based on market fluctuations. Many aspects and features of bitcoin or other cryptocurrencies are considered haram by many, and many people believe that it is only used for gambling and other purposes. other similar activities that are considered haram.
Who considers Bitcoin to be haram?
According to Mufti Taqi Usmani, currencies are originally a medium of exchange, and turning them into a commodity in order to make money goes against the philosophy of Islamic economics. According to Sharia, there is no valid reason for accepting Bitcoin or other cryptocurrencies as a currency. It is claimed that the cryptocurrency is merely an imaginary number generated by a complex mathematical process.
According to Mufti Shawki Allam, trading in virtual currencies is haram. This is because it is not accepted by legitimate authorities. Such currencies can lead to trafficking in contraband and money laundering, and can also be used for gambling, which is not considered halal.
The concept of cryptocurrency and money in Islam
Bitcoin and comparable digital forms of money fulfil the monetary functions of cash - as a medium of exchange, a unit of account and a repository of significant value - and are allowed to be used in a variety of ways. and may in addition, the status of Islamic cash by being 'standard cash'. Shariah perceives standard cash as something that gives money a higher status by being widely recognised in the eyes of the public or by order of the government.
What does Islamic law say about Bitcoin?
Under Islamic law, there are a number of criteria that individuals must follow to ensure that their investments or other income are considered halal. Firstly, income obtained through unethical or exploitative practices such as bribery, extortion and profit taking is considered haram. It would be difficult to argue that the mere use of Bitcoin as a standard payment method would violate this principle.
As yet, there are no clear official guidelines on whether or not Muslims should or should not invest in Bitcoin. This task would fall to the legislators who codified the religious precepts of Islam, but such an undertaking has yet to be completed. Nevertheless, a number of Islamic scholars have offered their interpretation of Islamic canon law and how it applies to Bitcoin.
Halal, haram or both?
Many Muslims use cryptocurrencies such as Bitcoin, and therefore it cannot be considered that it is always haram. According to studies, the majority of the use is halal, i.e. legal and not intended for the purpose of make money from they. Many people keep only one part of their capital and savings in Bitcoin, which is of good intentions. Then it is considered halal.
Man can therefore say that it is halal haram with Bitcoinbecause at the end of the day it comes down to what the actual purpose of use is. As a believing Muslim, you know enough about why you have chosen to use them, and then you also know whether it is halal or haram. So it is up to the user to judge their purpose.