I believe that Bitcoin and Cryptocurrency are Halal forms of investing as long as you carry it out in the right way.
I would like to emphasize that the views expressed here are my own based on the research I have done.
Now that I have got that out the way, let’s continue!
What is Bitcoin & Cryptocurrency?
Cryptocurrencies are booming at the moment. There is lots of information about this so I will just keep it brief here.
Cryptocurrencies are a form of digital money. Another key part of Cryptocurrencies is the Blockchain. This is a decentralized way to keep track of how much Cryptocurrency a person has. This also enables people to quickly and easily send money to each other without the need of any financial institutions.
Bitcoin is just one form Cryptocurrency and there are lots out there. The most popular form of digital Cryptocurrency at the moment is Bitcoin. This has increased in price exponentially. At one stage it was $30. At the time of writing it is worth over $7000.
Attending the Jibreel Institute event – Bitcoin Halal or Haraam?
I attended a Bitcoin event hosted by Jibreel Institute. This event was looking at Bitcoin and Cryptocurrencies from an Islamic angle. In particular, it was focusing on whether it is Halal.
I was pleasantly surprised to see a large number of people there. There were over 100 people – both Muslim brothers and sisters.
I found the talk by Mufti Faraz Adam particularly insightful. He explained the difficulty of reaching a consensus about if Cryptocurrencies is Halal. This is mainly because it is so new and technical. Also, this is a totally new concept.
Majority of Islamic Scholars say it is Halal
The current stance is that majority of the Islamic scholars consider Cryptocurrencies to be Halal. However, there seems to a debate about whether Zakat needs to be paid. To be on the safe, I intend to pay Zakat on all Cryptocurrency that I own.
There is huge potential with Cryptocurrencies. As mentioned earlier, Bitcoin has increased dramatically in price during 2017.
I plan to invest for the long term. I expect there to be lots of ups and downs in the short term. However, in the long-term, I am hoping that the overall price increases.
Very Speculative – only invest what you can afford to lose
We are still in very early days for Cryptocurrencies. So there is a lot of speculation and things will change a lot. A major trader in a Cryptocurrency could do one trade that causes a big change in the price.
I recommend that you only invest what you can afford to lose.
Not trading – too risky
I am only investing for the long term. A lot of people are trading daily in Cryptocurrencies. This means they are regularly buying and selling Cryptocurrencies.
The reason why I am not trading is that your emotions can get the better of you and it is very new and speculative. That’s why I am going to just invest and leave my money in there and only check the price around once every month.
Also, when you do trade, you need to make sure that you do it in a Halal manner. When you make a trade you need to make sure it happens straight away and not something that is set up for the future.
I plan to invest a small amount, to begin with – around $100. This will let me learn about the process.
Be wary of lots of new Cryptocurrencies
Cryptocurrencies are very fashionable at the moment. There are lots of new Cryptocurrencies coming out. You need to be careful in what you invest in and really research into it.
A lot to learn
Cryptocurrencies are still in there early days. Things are very volatile and there are new currencies coming out all the time.
So I suggest you keep learning. I find the best way to do it is by searching on YouTube and looking at Videos.
I really like this guy called Ivan on Tech. So make sure you check it out.
Follow my Cryptocurrency journey on this Blog
I will be blogging about everything I am doing with Cryptocurrency on this blog. So please follow along and join in the adventure.
Cryptocurrencies and Bitcoin are an exciting way to invest that could have a massive potential. That’s why I recommend learning about the process now and so that you can stay ahead of the game.
They are very volatile so start small and only invest what you are prepared to lose. This will allow you to learn about the process.
Also, follow me on this blog and we can Muslim Hustle Cryptocurrencies together.
Until next time, keep Muslim Hustling,
Muslim Hustle Guy