Is Bitcoin Halal?
If you missed our Instagram live with Halal Investment Analyst, Nader Tohamy, don’t worry. We have summarized the Instagram live into a few short sections to help answer your questions. Cryptocurrencies is a well debated topic in the Muslim community because of it’s questionablity on whether or not it’s permissable. Different scholars have different opinions on whether or not cryptocurrencies are halal. Many argue that cryptocurrencies aren’t permissible because there isn’t anything to back it’s value as a currency.
Nader Tohamy says “Since cryptocurrencies are a digital asset, it is permissible to buy/sell/trade them because they are seen and treated as an actual currency. You can now buy commodities with bitcoin.” Nader continues to say “All of the arguments that come from why it’s not permissible have already been taken care of. This is in regards to its uncertainty as a currency and that’s not the case anymore”. He continues to explain that different companies are now putting Bitcoin on their balance sheets and using it as a means of actual currency. These companies include “Tesla, the New York times, and possibly Walmart''. The most important thing to do is to check the “intended nature” of the currencies.
Are Penny Stocks Haram Because They are High Risk?
As with cryptocurrencies, penny stocks are also perceived as high risk. There is a level of uncertainty that penny stocks entail. What is a penny stock? A penny stock usually means the stock of a small company that usually trades for less than $5 per share. Penny stocks are usually traded over the counter (OTC). Are penny stocks haram because they are considered high risk? Halal Investment Analyst, Nader Tohamy, says “it depends on the reason why you’re investing in them, and your knowledge about the company”. He continues to say that “With Penny stocks there is an underlying company there, usually a startup. As long as the company is Shariah compliant then it should be okay to invest in”. Nader suggests not putting all your eggs in one basket which means spread out your money and investments across different stocks and platforms.
Watch the segment here:
https://www.instagram.com/tv/CNxNxMOjKxr/?utm_source=ig_web_copy_link
Written by Anan Helwih