What is Bitcoin?
It is a digital currency that is not backed up by the government. It uses peer to peer network. Bitcoin is used through digital wallets and it is not linked to any bank. Bitcoin is a risky investment, its price increases and decreases. The rising price of bitcoins is leading to a lot of questions that if the currency’s boom is about to bust or not.
Many Muslims who are conveniently tagged ‘conspiracy theorists’ think that this currency can be an alternate to the controlled banking systems of the world working on the “devil’s agenda”, learned scholars of Islam tell us that one should stay away from all kinds of currency devoid of ‘Intrinsic’ value.
What is the meaning of “Intrinsic” Value?
In simple words they tell us to abstain from such currency that has no value as a standalone object i.e paper, digital, plastic.
If the value of the money is inside the money then it is considered ‘Halal’ or valid, ‘If the the value of the money is ‘fictitious’, If it is not inside the money it will be considered fictitious (made-up), It can be controlled by a lot of parameters and its value would be interdependent on a lot of things which may produce peaks and valley’s in it’s value, the original currency will not have a value until and unless it is assigned to it (printed on it, in case of paper), whatever is outside the money can easily be manipulated.
Bitcoin is booming nowadays, hitting a record high of $6000 on Friday. In 2012, its value was about zero per dollar but Bitcoin has increased over 500 % this year. When it was launched in 2009 its worth was about just a few cents .In 2016 it was among the world’s top crypto currencies. It was just $15 at the start of the year but now it soars around $6000.
For the first time ever in the history its market value reached over $100 billion. There are lots of crypto currencies that are competing with each other, Bitcoin will become the leading crypto currency this October, claim economists.
It’s worth is now more than many companies in the U.S. Bitcoin’s market capitalization has surpassed $100 billion. Bitcoin are worth more than PayPal, Goldman Sachs Group Inc. and eBay Inc.
Many people heard about Bitcoin but were not into it as much in the start, as the crypto space has grown with time, Bitcoin and crypto currencies are getting a lot of interest and attention from many institutions and people.
Its demand has increased in the major markets, China was the biggest market for bitcoin in the world. The rumours are that China will undo its ban on crypto currencies and this would give bit coin a boost. China will introduce a national licensing program as there is a strong chance of crypto currency trading continuation in China.
The concept of bitcoins sounds interesting and smart but it has some flaws too, as it can be used for circulating illegal imports and money laundering.
Black Rock’s head Larry Fink has explained bitcoins as “it is an index of money laundering”. He added that these virtual currencies are not backed by the banks or governments. No government recognizes these currencies.
Some of the analyst and experts are saying that it is scam. J.P Morgan Chase CEO Jamie Dimon said that it is a ‘fraud’ and people who are investing in it are ‘stupid’ he also added that the block chain can have uses in technology.
Blockchain cuts out the middle people in transactions and it is impossible to hack. The identity data that is stored on a block chain could help finance firms in future.
The main benefit is that bitcoin uses the block chain technology for transactions. The blockchain is the biggest revolution. A blockchain is used to record transactions across many computers.
Bitcoin is digital and can be wiped out by a computer crash. Its price is based on demand and supply and it’s rate of exchange can fluctuate widely.
It’s hard to imagine that Bitcoins are making this world a better place, Bitcoin is used to buy drugs that are illegal and criminals launder money through it the price shuffles around a lot, and will remain unstable in the future. These crypto currencies have a long way to go.
Is there a future for Bitcoins? Or is it just a popular craze that may soon change into something else? Only time will tell.