Is Bitcoin Halal or Haram? Questions is binary options trading haram whether Bitcoin is haram or halal have been asked in the Muslim countries.
Here, we look how acceptable the currency is in Muslim countries. Forex Broker News and Reviews » Is Bitcoin Halal or Haram? The answer to the question can seem obvious to many. However, in Islam countries, there are specific guidelines on Islamic financial principles which people use to define what money is or isn’t. One will, therefore, need to ask herself whether Bitcoin is compatible and complementary with Islamic finance and banking law. We will explore every angle of Bitcoin with regard to Sharia laws. Does Bitcoin have intrinsic value?
Sharia law says that a currency must have an intrinsic value. This means that money must have some use before it can be considered permissible. There are certain instances when financial institutions create currencies which are without intrinsic value. A currency must be backed by a commodity of actual value. However, this doesn’t prevent it being counted as a currency or halal.
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Below are the reasons why it’s counted as a currency. The Islam law also forbids the charging of interest and the profiting from the interest which is paid out of loans. Islam does not believe money is a commodity but rather a means of exchange. This means that a currency should resist inflation and should command a steady market price. A currency which is based on interest and debt is called Fiat. Such a currency is haram.
A transaction becomes Fiat if one party to the transaction is bound to gain unfairly more than the other. A transaction should be done on the spot and should be void of any speculation. It is, therefore, haram to trade currencies for speculative purposes. Given that Bitcoin comes about because of a mining process, it can be compared to the olden day currencies which were physically mined.
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