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Story: Cryptocurrency like Bitcoin not Lawful in Islam here's why.; 30-03-2024;

Cryptocurrency is not considered Halal, here's why?

Many Muslims are attracted towards the latest and trending Cryptocurrencies like meme-coins, and specially the Bitcoin. Youth of today want to know if it is considered Halal or Haram in Islam, here we've tried to answer the question “is Cryptocurrency Halal or Haram in Islam?” We've tried to put a fair amount of evidence and information on the topic.

The Crypto industry is highly fluctuating and sometimes a part of a Ponzi scheme, or fraud chain. Moreover, governments do not control the Cryptocurrency.

Bitcoin or any other Cryptocurrency is not halal (lawful) in the Islam, as of Islamic Scholars (Aulama-e deen). One of the Mufti at a DawateIslami program talked about it, here, ⁣ Mufti Ali Asghar on lawfulness of Bitcoin or any other Cryptocurrency .

You can learn more why it is not considered as Halal in Islam. Mufti Ali Asghar has given good examples as to how and why the Cryptocurrency is not halal in Islam.

Mufti Ali Asghar also pointed out the “un-necessity” of the Cryptocurrencies.

One solid fact about the Cryptocurrencies not being a good thing for people in general is that, people buy it with the real world money that is certain to have more stable value in the markets for longer time bound.

Compared to that, Cryptocurrencies are not certain to hold its value for any certain time, and are not regulated like real money, physical assets. Hence, the security threat is always there to a cryptocurrency being a Ponzi scheme, or loosing its entire value due to cyberattacks, market collapse, fraud.

There are ample amounts of evidence to prove the above point. The 2022, and 2023, market meltdown of cryptocurrency, that wiped out large amounts of money belonging to people around the world who choose to invest in crypto markets.

Here are some reports:

Some estimates suggest the market crash wiped out Billions of Dollars of investment.

The fall of Bitcoin from a record high, Bitcoin lost over 60% of its value in 2022.

The FTX exchange fall: One of the largest crypto trading platform in the world of its time, FTX, filed to bankruptcy in late 2022, after it lost around $8.9 billion in customer assets.

The company said the assets went missing from the exchange. Sam Bankman-Fried, the founder and CEO of the exchange, was recently sentenced to 25 years in prison for charges including fraud, misleading people and conspiracy.

The notable coins like Terra (Luna) stablecoin TerraUSD (UST) lost its 99% value overnight:

The market cap dropped from above $40 billion to just $500 million. Terra was once ranked among the top 10 most valuable cryptocurrencies. It dropped below $1, having peaked close to $120 just a month earlier to its fall.

One other thing to notice here, is that the Islamic Scholars are not against technology here, as many Islamic Scholars consider the Blockchain good technology that could benefit the masses, but just not in the form of Cryptocurrency. As it is evident with the recent news from the industry itself.

Blockchain could help in making things more secure online as well as offline, due to its unique code generation ability, according to some experts.

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