Is Crypto investment Haram?

Tit4Tat

Senator (1k+ posts)
So few cryptos like Dodgecoin etc lately became popular, some of you who follow cryptos would know all about how Elon Musk and SNL live were creating all the hype. I bought some too :) but now someone in family said that they are not halal and few who disagree with this being haram said that our maulvis know jack shit about cryptos and its easy for them to declare everything haram so its allowed.

What do you guys think? Is it permissible ?
 
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Tit4Tat

Senator (1k+ posts)
It is nothing like stock exchange. It is highly speculative with no fundamentals and due to its very nature it is totally haram.

they say there is a complete process (mining) behind it. I don't know about its fundamentals, i am reading about it these days, its so difficult to know

and what if it becomes the currency of the future as many are predicting it to be? will it still be haram? i heard paper money was also declared haram by our so called Islamic scholars way back in the past
 

Hate_Nooras

Chief Minister (5k+ posts)
The technology is real and will help to create the digital currencies for each country in the very near future but these cryptos are a ponzi scheme and if ponzi schemes are haraam, then this is haraam.
 

expat_loyal

Councller (250+ posts)
they say there is a complete process (mining) behind it. I don't know about its fundamentals, i am reading about it these days, its so difficult to know

and what if it becomes the currency of the future as many are predicting it to be? will it still be haram? i heard paper money was also declared haram by our so called Islamic scholars way back in the past
First of all its name cryptocurrency is misleading as it is not a currency the best you can compare it with is a commodity. Than as you said it is difficult to find out what is going on inside which is correct as nobody knows for sure what is going inside so you can not be sure about its valuation therefore there is an element of Gharar which make it totally haram.
 

baalti

Senator (1k+ posts)
its not haram... if u r treating it as haram or using haram means to invest in it then yes, if u r selling ur house and banking on becoming filthy rich, taking undue risk which is beyond ur means, yes... then it will be haram... but if u are investing a fair amount of money which will not hold ur household to undue stress or put u on wrong paths to attain, you are just fine.

however, to each his own, if u feel its haram then dont do it...

personally speaking, i believe its just fine and have invested in it and have seen the fruits of it.

dont get greedy, always set ur goals and follow them, make an exit plan (realistic) and follow it, take gains when you can... always buy low/dips and sell higher/green, dont ever panic, and dont make domino chain events of bad moves... if u made a bad trade/buy/sell, just walk away and wait till you can recover from that, dont try to fix it emotionally, u will always mess up. Patience is the key here, patience pays off big time... majority of youtubers regarding crypto are idiots that dont know what's going to happen themselves, and mostly give you BS numbers and create hype to make you happy... do your own research, filter out and find out the 2-3 main analysts for ur crypto, and take what they say with a pinch of salt, as they too are just guessing...

good luck...
 

surfer

Minister (2k+ posts)
So few cryptos like Dodgecoin etc lately became popular, some of you who follow cryptos would know all about how Elon Musk and SNL live were creating all the hype. I bought some too :) but now someone in family said that they are not halal and few who disagree with this being haram said that our maulvis know jack shit about cryptos and its easy for them to declare everything haram so its allowed.

What do you guys think? Is it permissible ?
I’m not an expert and and have just started researching this. To me it’s a commodity- just like dollars or euro etc

Traditional currencies are back by gold/sovereign promises, but crypto may not have that. However there is solid technology behind it and it can be valued as traditional currencies are - but currently the market is very speculative- just look at dodge coin over the short term

but coming to your question - did the person who said it’s haram explain why?

Is it because of the speculative nature of the market? Then again all commodities markets have a degree of speculation and react to global events - just like at how oil reacts. But yea crypto do seem to be more volatile

hope that helps - (rather then confuses more :) )
 

baalti

Senator (1k+ posts)
First of all its name cryptocurrency is misleading as it is not a currency the best you can compare it with is a commodity. Than as you said it is difficult to find out what is going on inside which is correct as nobody knows for sure what is going inside so you can not be sure about its valuation therefore there is an element of Gharar which make it totally haram.

digital currency is the future, you have to know which coins are legitimate and which ones are ponzi (dogecoin)... these markets are work in progress, and are currently valued on speculation, however, sooner than later it will be in use, we are just at an early bird phase... here in north america i havent seen the face of fiat money for the last 2-3 yrs... we use cards, we use mobile banking, e transfers etc to get things done, the money in is on cheques and u have a numerical value to ur bank accnt and money goes out without u holding it... in future it will be further digitalized... and thats what crypto is... just know which coins will actually have usage and which ones wont...
 

Diesel

Chief Minister (5k+ posts)
they say there is a complete process (mining) behind it. I don't know about its fundamentals, i am reading about it these days, its so difficult to know

and what if it becomes the currency of the future as many are predicting it to be? will it still be haram? i heard paper money was also declared haram by our so called Islamic scholars way back in the past
mulla knows londa bazi is haram but they doing it
 

Tit4Tat

Senator (1k+ posts)
I’m not an expert and and have just started researching this. To me it’s a commodity- just like dollars or euro etc

Traditional currencies are back by gold/sovereign promises, but crypto may not have that. However there is solid technology behind it and it can be valued as traditional currencies are - but currently the market is very speculative- just look at dodge coin over the short term

but coming to your question - did the person who said it’s haram explain why?

Is it because of the speculative nature of the market? Then again all commodities markets have a degree of speculation and react to global events - just like at how oil reacts. But yea crypto do seem to be more volatile

hope that helps - (rather then confuses more :) )
thanks it definitely helped, i will post something about why they said its haram tomorrow
 

surfer

Minister (2k+ posts)
digital currency is the future, you have to know which coins are legitimate and which ones are ponzi (dogecoin)... these markets are work in progress, and are currently valued on speculation, however, sooner than later it will be in use, we are just at an early bird phase... here in north america i havent seen the face of fiat money for the last 2-3 yrs... we use cards, we use mobile banking, e transfers etc to get things done, the money in is on cheques and u have a numerical value to ur bank accnt and money goes out without u holding it... in future it will be further digitalized... and thats what crypto is... just know which coins will actually have usage and which ones wont...
That’s a very good way of putting it. Crypto is just taking the banks out of the equation
 

skinnylizard

Councller (250+ posts)
i have bought crypto for long term investment, thus far it has gone up by 800% since its launch where its value was $3 a coin and now its trading at $38 and this Q3 is gonna make some people rich..
 

kakamuna420

Chief Minister (5k+ posts)
anything
It is nothing like stock exchange. It is highly speculative with no fundamentals and due to its very nature it is totally haram.
agreed. anything that is speculative or gambling prone is haram. That money will not help you. Moreover, you will end up losing your hard-earned money to gamblers.
 

kakamuna420

Chief Minister (5k+ posts)
i have bought crypto for long term investment, thus far it has gone up by 800% since its launch where its value was $3 a coin and now its trading at $38 and this Q3 is gonna make some people rich..
our religion wants us to earn money with our hands, with our skills, and not by gambling.
If your example would be valid, all educational institutions will be empty and all people working in menial jobs would buy coins and sit at home for 100000% profit.

People like you are enemies of Allah.
 
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