So, should you trade in this cryptocurrency? Is Bitcoin halal or haram?
Let’s find out.
Bitcoin Halal or Haram
The argument in favor of Bitcoin that it is permissible in Islam.
Public Ledger and Block Chain
There is one view that says that it is Halal. So, how is it permissible to trade in this currency? There is an argument in its favors stating that it goes beyond the conventional methods of banking. The private banks use private ledgers for which the public does not have any knowledge. Also, there is no guarantee about ownership of the assets
On the contrary, Bitcoin relies on the blockchain. There is a mathematical certainty involving complex calculations ensuring that the assets’ owners can easily transfer the ownership. Unlike the conventional banks, it does not rely on the principle of fractional reserve. We know Islam does not offer the provision of fractional reserve.
No Debt and No Violation of Any Provisions in Islam
Many say that this cryptocurrency is a lot more halal than the conventional currencies in circulation. The logic given behind this argument is that there are no particular provisions that it violates. Therefore, it should not be considered prohibited in the religion.
There is also another logic behind considering it as permissible in Islam. Debt does not back the cryptocurrency. Unlike the conventional banking system that relies on debt, no loan behind it has to support it. Also, due to lack of debt, there is no involvement of interest earnings at the back of it.
Certain things concern the Muslims. Below are two things that you need to consider before deciding about bitcoin halal or haram.
Means of the Money
There is this question of how the money was earned that went into the accounts. Therefore, unless you know the source, you cannot tell if it is permissible by the religion. Thus, the question of the means through which the money was earned remains in question. There is no way to trace the source of the money.
The Question of Morality
Morality does come into question about the way the money is going to be used. Since there is no way to determine how the money is going to be used. Therefore, it is essential to know where the money will go. If it will be used for any activities that are not Islamic or beneficial for society? Instead, worse, if these actions will be harmful to the community.
These are the two questions that remain difficult to answer. Therefore, Bitcoin halal or haram is not that easy to determine. It needs further research before we can come up with a more definite verdict acceptable to everyone and the one that answers all the underlying questions. There are many online places to buy Bitcoin. However, you must think of these reasons in more precise terms before making the decision.