Trading in Bitcoin

01 Aug 2018 Ref-No#: 852

Assalamu A’laikum,
As you all know cryptocurrency has earned a good reputation previous year.
My question is related about Bitcoin.

Many are claiming that bitcoin will get as low as 900$ then may get a strike of 20,000$

So if I buy bitcoin in lower price & sell it at higher will it be a gamble or trade?

If it’s a gamble then aren’t every business is gamble?
‘Cause this is the main theme in all business. You buy at low & then sell it at higher. You have to analyse the market, speculate what may happen & take decision whether to buy or not.

May Allah have mercy on us.

Answer

Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

Our senior Ulama currently differ with regards to Bitcoin and other crypto-currencies. Even governments and banks are not sure whether to treat these as currencies or not.  Some go to the extent of terming bitcoin as a ponzi scheme. Thus, our illustrious teacher, Mufti Ebrahim Desai Sahib suggests that we maintain caution for now.  This is in conformity to the following narration of the Prophet (sallallahu alayhi wa sallam):

الحلال بين والحرام بين وبينهما مشبهات لا يعلمها كثير من الناس فمن اتقى المشبهات استبرأ لدينه وعرضه (أخرجه البخاري – (1 / 28) ومسلم- (5/50)

“Halal is clear and Haram is clear. Between the two is that which is doubtful which many people do not know about. Whoever protects himself from the doubtful protects his religion and integrity.” (Narrated by Bukhari (1/28) and Muslim (5/50)