Wa alaikum assalam wa rahmatullahi wa barakatuh.

We have all heard someone say bitcoin is haram and we have all heard another person say its halal.

How do we know who is right? Let’s break it down.

I’ll tell you what scholars have said arguing from both sides. I will then give you my opinion and you can make a decision for yourself. I’ll be as fair as possible.

Some scholars claim it’s haram for the following reasons:

There are governments that don’t recognize it as a currency yet.

It its highly speculative and volatile.

Some people use bitcoin for haram activities like money laundering.

Fatwas:

“Trading in Bitcoin is forbidden as it harms individuals, institutions, and economies.” - Dar al-Ifta al-Misriyyah

“Bitcoin carries a high risk of deception and speculation, which are prohibited in Islam.” - Sheikh Muhammad Hussein

“Buying and selling virtual currencies is not appropriate from a religious perspective.” - Turkey’s Directorate of Religious Affairs

Some scholars claim its halal for the following reasons:

Bitcoin involves zero interest.

It’s recognized as a medium of exchange (currency) just like gold and silver.

Bitcoin is 100% transparent with voluntary and mutual trade which is a key islamic principle.

Fatwas:

“Bitcoin qualifies as Islamic money, and investing in it is halal as long as it’s not used for haram purposes.” - Mufti Muhammad Abu-Bakar

“There is nothing in Shariah that prohibits the trade of digital assets that carry value.” - Mufti Faraz Adam

“Bitcoin can be categorized as an asset (mal) in Islam.” - Majlis Tarjih Muhammadiyah

My opinion:

This isn’t a diss on any scholar but there is a really big difference in making fawtas related to finance compared to just general fatwa’s.

General fatwa’s on islamic rulings? Cool they have spent their whole life studying islam, I trust their opinion.

Unfortunately lots of islamic “leaders” who claim bitcoin is haram don’t have the credibility of a financial background to prove bitcoin is haram.

Let me explain.

“There are governments that don’t recognize it as a currency yet.” That was one of the reasons some people said bitcoin was haram.

Well every government recognizes the US dollar as a currency and it has zero intrinsic value, there is nothing backing it, it’s based solely of riba and they print more “fake” money every single year.

So why should we say something is haram because governments that are bombing children “don’t recognize it as a currency”? Do you see my point?

The next point that it’s haram was “It its highly speculative and volatile”.

Bitcoin is only volatile on a small time horizon and if you want the most success in investing you should be having a long time horizon without trying to make fast gains within a week or few months.

Bitcoin has been the top performing asset for that past 12 years. Better than any currency, gold, silver, real estate, stocks, bonds, and everything else.

Gold prices also go up and down, does that mean gold is haram? No. That’s just how assets work. They go up and down in value. Still following me?

The final point people use to say bitcoin is haram was “Some people use bitcoin for haram activities like money laundering.”

Yes and people use restaurants to launder money, does that mean owning a restaurant is haram? No of course not.

Every single currency except gold is based on debt. Bitcoin is not based on debt. If anything bitcoin is more halal than the US dollar in my opinion.

I personally own bitcoin and I think it’s a great asset.

Disclaimer:

I’m not giving you a fatwa. I don’t have the authority to do that. I’m just telling you what scholars say and what my personal opinion is.

Make sure when you buy assets that you are only buying things you are comfortable with.

If you want a comprehensive guide on halal investing I have created something called the Halal Money Guide 2.0 which teaches beginners how they can start investing into assets the halal way. You can get it here



























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