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Cryptocurrency and Islam
Bitcoin and the cryptocurrency market exhibit all of the classic characteristics of asset bubbles when compared to historical asset bubbles such as the 1999 DotCom bubble and the 1637 Dutch Tulip Mania (Authers, 2017; Phillips and Gorse, 2017; Sovbetov, 2018; Blau, 2018). What does Islam think about this new currency technology in the financial system?
Cryptocurrency in general
The majority of peer-reviewed scientific articles indicate that cryptocurrency has more disadvantages. William Goetzmann, a Yale University economist, was quoted in Silverman et al. (2017); states that due to the lack of intrinsic value and the prices of cryptocurrencies being driven by speculation, there is no way for cryptocurrencies to be valued fundamentally, making the market irrational.
The growth of the shadow economy, which leads to tax evasion, effectively destroys the concept of an integral state. Unsafe cryptocurrency Inability to identify financial transaction participants (anonymity, laundering of criminal proceeds, financing of crime, fraudulent activities, etc.), The exchange rate is highly volatile. Lack of a mechanism for benefit redistribution to address social challenges The loss of data in a cryptocurrency wallet makes any other method of withdrawing financial assets from it impossible. Uncertainty in regulatory matters, including illegality in some…
