Bitcoin is nothing new for the tech world. It has existed for quite some time now and many people are widely using it as the virtual banking currency of the internet. However, there still are a few people who have several questions regarding its existence, use and ways to make money with Bitcoin.
Who created Bitcoin? Where did they actually come from? How did the Bitcoin revolution start? What is their worth and existence? Is Bitcoin a Scam or legit? Who owns them? How do they work? Where can you get them from? And the list of queries goes on!
Therefore, to provide you with all the answers to all the questions crossing your mind, we have done a whole lot of research. Let’s have a look!
What is Bitcoin?
Bitcoin is the currency of the internet, an innovative digital payment network and a new kind of money. It is an electronic currency which is more commonly known as ‘cryptocurrency’. Bitcoin is a form of digital public money which was created as open-source software by a bunch of genius programmers under the name of Satoshi Nakamoto.
It is the first decentralized digital money which is used widely all over the world and accepted by many businesses. Bitcoin uses peer-to-peer technology to function individually with no central authority or banks. All the tasks ranging from managing transactions to issuing Bitcoins are carried out solely by the network itself. Its design is public and open for all; nobody owns or controls it.
As, it is said:
With Bitcoin, you can be your own bank.
How does Bitcoin work?
In order to start off with it, you do not have to be technically sound or get into details regarding the software. Initially, all you need to do is, install Bitcoin wallet on your mobile phone or computer which will automatically generate your Bitcoin address and then you are all set to go! You can give your address to your friends or family or business partners so that they can pay you.
Since this is a peer-to-peer technology, transactions take place between users irrespective of the medium. All of the transactions are verified by the network nodes and are recorded in a public disturbed ledger which is called a block chain.
Is Bitcoin halal or haram?
According to Islam, a currency must have an inherent value and must be used to buy some more currency. It must be exchanged against some asset and not money. Also, the currency must be tangible, must have an evidence of existence, must be deflationary in nature, must share profit and loss and must not charge interests.
Now coming on to Bitcoin, there are several points which need to be discussed. Firstly, it is created through the process of mining where a small amount of Bitcoin is given to the mining operations for processing transactions therefore; it’s working it quite simple. Secondly, it receives an intrinsic value since the proof of work can be provided by the hardware and electricity costs. Moreover, the existence of the Bitcoin and it being tangible can be verified by the network nodes and block chain. However, there are a few concerns regarding interests or debts which make things complicated. Since, none of the scholars have yet agreed on whether it is halal or haram, we can’t say much about it.
Therefore, it is quite difficult to categorize it as halal or haram depending on what everyone has to say. One must wait for all the scholars to decide on one thing and then follow what’s right and to the best of their interest. Till then its quite early to say whether Bitcoin is Scam and Fraud or not.