What Is Bitcoin? Why Do You Think Bitcoin Is Haram? – Musaffa Academy (2024)

FAQs

Is Bitcoin haram and why? ›

One of these haram uses is gambling. Because gambling, in general, is not ethical according to Sharia laws, these laws forbid gambling with Bitcoin as well. Not only gambling but also lending and some other types of trading with bitcoin are almost certainly prohibited.

Bitcoin is a form of digital currency that uses blockchain technology to support transactions between users on a decentralized network. New Bitcoins are created as part of the mining process, as a reward to people whose computer systems help validate transactions. Buying Bitcoin exposes you to a volatile asset class.

Bitcoin's original design was to be a replacement for traditional money systems and take control of money away from centralized governments and third-parties.

Funding fee people say it is haram because it has to be paid at every 8 hours . Even it is at 8 hours of trading is enough to make profit and exit . When we exit trade there is no funding fees charged. Fraud and deciet can be in any trading , again who have no knowledge about crypto if they trade they will lose money.

While Bitcoin is welcomed in many parts of the world, several countries are wary of its volatility and decentralized nature. Some also perceive it as a threat to their current monetary systems while being concerned about its use to support illicit activities like drug trafficking, money laundering, and terrorism.

The permissibility of forex trading in Islam hinges on adherence to Islamic finance principles. In Islam, forex trading is considered haram when it involves interest payments, high uncertainty, or speculative practices resembling gambling.

Bitcoin is a digital currency which operates free of any central control or the oversight of banks or governments.

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.

“In Shariah, there is no valid reason to accept bitcoin or other cryptocurrencies as a currency. It is just an imaginary number, which is generated through a complex mathematical process. It is purchased for gambling or speculations, and used in illegal or unlawful transactions”.

Is short selling haram? ›

Based on these characteristics, most Islamic scholars believe that options are prohibited investments. Raj Bhala calls the short selling of stocks an example of common financial trading forbidden by sharia law — forbidden because the short seller borrows rather than owns the stock shorted.

However some muslim scholars in Indonesia gave fatwa like this: Cryptocurrency, if you use it for investment only, is allowed. However, if you use it for transaction it becomes haram.

Ishaq Al-Fayyad who said: It is permissible if it has value and the transactions in it are not approved as a waste of money dealing with usurious transactions. There are many other leading scholars in the Hawza of Najaf Ashraf and Qum who also say that dealing with cryptocurrencies is permissible.

Islamic Cleric Approves Bitcoin: A Watershed Moment

The cleric, known for his adherence to Salafism—a conservative and orthodox Sunni Islamic movement—has given a nod to the legitimacy of Bitcoin within the framework of Islamic finance. Fatwa of Al-Allamah Abdulrahman Al-Barrak (may Allah preserve him) on bitcoin.

So Let's talk about Margin Trading , in margin trad Binance provides you debt 💸 Like 3x , 5x or 10x of your amount a same copy of futures trading but a little bit different and binance charge hourly interest on that debts so that's completely haram .

Whether or not airdrops or bounties halal, depends on the rulings upon cryptocurrency. It's still a subject of disagreement among the modern scholars. There is also another tricky part, that is there are thousands of different cryptocurrencies these days. Each has its own specific purpose, community, behavior, etc.