Bitcoin is a currency. You can trade any currency for any others and this is halal. The value of a currency is not fixed. The value may go up or may go down for many reasons in the view of other currencies. Dec 14, · Bitcoin trading is halal or haram malaysia It's always bitcoin trading is halal or haram Malaysia free, for as long as you want with no investing into bitcoin what to know Singapore hidden costs. Automated software therefore, generates signals based on the algorithms it uses, and will open and close trades based on those algorithms. Trading the financial markets with Is Bitcoin Trading Halal when conditions are volatile can be difficult, even for experienced traders.
Trading bitcoin is halalIs trading Bitcoins/Altcoins Halal or Haram? (sunni view) - Islam Stack Exchange
I think that crypto-currency is little bit different, it's not stored in banks, I can keep it in my machine, and trading purposes I had to store my coins in a website then for every exchange there's some fees, these fees differ from one trading platform to another. The fees may be composed of:. This post about bitcoin in islam is quite interesting if you want to read more about the subject 1. Bitcoin is not a traditional note based currency but similar to commodities like gold, silver etc , some would call it a cryptocommodity which is indeed intrinsically accountable and can be proven to exist if required.
Other currencies like notes are impossible to trace intrinsically and are essentially contract papers whereas a bitcoin stores the entire transaction history under the larger bitcoin framework. Islam requires accountability of the commodity spent and you just cant duplicate currency notes to fulfill demand like how govts do with paper currency. Inbuilt Accountability of bitcoin allows the bitcoin commodity to be traceable and thus cant be duplicated on demand. Far from haram I would say that bitcoin is the currency best suited according to the laws of Islam which required the currency to have intrinsic value not just a signed piece of paper whose value can be lost due to various circumstances.
The best thing about bitcoin is that it is not controlled by central banks and the bitcoin you possess is the actual "coin" which was virtually mined. So it does have an intrinsic value which is nothing but proportional to the difficulty to mine it.
This is similar to how difficult it is to mine real gold. Also, real currency which Islam allows is deflationary in nature that i. Whereas in the paper currency its inflationary as more notes a printed to keep up with the demand thus reducing the value per note.
The total number of Bitcoins also are limited to a few million hence its value will always rise. Thus I would even go on to say that using bitcoin is more halal then using currency notes supplied by the reserve banks. The value of a currency is not fixed. The value may go up or may go down for many reasons in the view of other currencies. If you buy a currency with another one and the value of the currency that you bought raise it means that you gained profit. Some persons may not like that people use the currencies that governments cannot see and trace it.
Bitcoin can be in ownership of a person and that person can decide what to do with that. Trading in some cases is not halal. When trade something that is not halal like buying goods that you know they are stolen.
When the result of trading damages the Islamic society and you may know about it Ayatollah Shirazi and his verdict against tobacco. When the trading is result to riba gain that is not halal.
For example if someone gives another person amount of money and sell a goods like a chocolate for it's interest of the money that he gave the other one and the one who got the money in the debt of the first one for the money and the chocolate that he bought it is riba.
As gaining profit in forex is halal if you gain profit from the raising value of bitcoin that you have you gain a halal profit. If you are shia you must remember you should pay your Khums as the bitcoin is in your ownership and you must calculate the value of those amount of bitcoin that you have.
Bitcoin does have intrinsic value as it is based on proof of work value , therefore I see it as halal except of course if charging interest. In fact, as I understand it, the blockchain is technology that records proof of work. Bit coin is the virtual currency so how is it halal? I also opened an account for bit coin but i need to pay dolor to buy bit coin and it will only show me number of bit coin in my account rather i get it in physical form.
So such trading is not as per Islam. That is if you do your homework before investing and not just throw in money blindly. Another aspect of bitcoin trading that raises a debate is the use of margins and leverages. Margin and leverage are different but still interconnected. With margins and leverages, you trade using a percentage of a position while controlling the entire position. Trading using margins and leverages is not permissible in Islam because it involves making money with money that you do not own.
According to Islam, bitcoin trading is considered more haram than halal though there is always the debate. What is essential to consider is whether your bitcoin trade is a gamble or an investment.
A lot of bitcoin traders trade on just speculation, which is almost the same as gambling and thus haram. The majority, they say, carries the vote; hence, many Islamic scholars consider bitcoin trading to be total haram.
Trading bitcoin is halal if you come up with a trading strategy and do not trade on probabilities. Coming up with a trading strategy requires that you put in work, which reduces risk. That way, your bitcoin trading as a Muslim is more like investing rather than gambling. It would be best if you endeavored to trade with your money and avoid trading using margins or leverages.
Both are entirely impermissible according to Islamic laws. As mentioned earlier, people who understand bitcoin and blockchain technology are not many, so there are more speculators than strategists.
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