Bitcoin (BTC)

Peer-to-Peer Payments

Bitcoin is a decentralized digital currency that allows users to send and receive payments directly without needing a bank or middleman. You can pay for goods and services or send money to anyone worldwide quickly and securely.

Investment and Speculation

Many people buy Bitcoin as an investment, hoping its value will increase over time. It is often seen as a digital form of gold, used to store value and hedge against inflation.

Crowdfunding and Donations

Bitcoin can be used to raise funds for projects or charitable causes. Donations can be made easily and transparently, sometimes even during emergencies to provide quick financial aid.

Micropayments and Innovative Services

Bitcoin supports small payments for things like internet radio, web content, or WiFi access, enabling new business models that were difficult before.

Financial Inclusion and Global Access

Bitcoin provides financial services to people without access to traditional banks, allowing them to own property, make purchases, and participate in the global economy.

Security and Control

Users have full control over their money with Bitcoin, secured by cryptography. Transactions are protected against fraud, and users can maintain privacy without revealing personal information.

Expanding Use Cases with Technology

Technologies like the Lightning Network enable faster and cheaper Bitcoin transactions, expanding its use beyond simple payments to more complex financial activities.

Business and Merchant Adoption

More businesses accept Bitcoin as payment, making it easier for customers to use it in everyday life. Some companies also invest in Bitcoin or use it to facilitate cross-border payments.

These use cases show how Bitcoin is more than just digital money; it is a versatile tool for payments, investment, fundraising, and financial empowerment worldwide.

Pros of Bitcoin

• Decentralization and Control: Bitcoin is not controlled by any government, bank, or business, giving users full control over their money without intermediaries.
• Limited Supply: Only 21 million bitcoins will ever exist, which can protect against inflation and currency devaluation.
• Accessibility: Anyone with a mobile phone can access Bitcoin, even without a traditional bank account.
• Security: Bitcoin transactions use blockchain technology, making them secure and difficult to counterfeit or steal without physical access to the user's private keys.
• Fast and Low-Cost Transfers: Bitcoin allows instant payments worldwide without waiting for banks or paying high transfer fees.
• Store of Value: Many see Bitcoin as "digital gold," a way to store value over time.
• Transparency: The blockchain ledger is public and immutable, ensuring transaction transparency.
• Self-Custody: Users can hold their own bitcoins without relying on banks or third parties.
• Growing Institutional Adoption: Several companies and governments hold Bitcoin as a reserve asset, increasing its legitimacy.
• Investment Options: Bitcoin ETFs allow investors to gain exposure without managing wallets or keys.

Cons of Bitcoin

• Volatility: Bitcoin prices can fluctuate widely, making it a speculative asset with potential for rapid gains or losses.
• Transaction Speed: Bitcoin transactions take about 10 minutes on average, slower than credit cards or cash.
• Energy Usage: Bitcoin mining consumes a large amount of electricity, raising concerns about environmental impact.
• Complexity: Managing private keys and wallets can be difficult; losing access means losing bitcoins permanently.
• Regulatory Uncertainty: Governments are still developing rules for Bitcoin, which can affect its use and acceptance.
• Tax Implications: Bitcoin transactions may incur capital gains taxes, requiring careful record-keeping.
• Limited Use as Currency: Not all sellers accept Bitcoin, and its price volatility makes it less practical for everyday purchases.
• Security Risks: While secure, Bitcoin can be lost or stolen if private keys are compromised or hardware fails.
• No Reversals: Bitcoin transactions cannot be reversed, so if goods are not delivered, there is no built-in protection.
• Speculative Nature: Some view Bitcoin as a bubble, and its long-term value is still debated.

This summary reflects the main advantages and disadvantages of Bitcoin based on current information.

Founders of Bitcoin

Bitcoin was created by a person or group using the pseudonym Satoshi Nakamoto. The true identity of Satoshi Nakamoto remains unknown and is one of the biggest mysteries in the crypto world. Satoshi published the original Bitcoin white paper in 2008 and launched the Bitcoin network in 2009. They continued to work on Bitcoin until 2010 before disappearing from the public eye.

Theories and Speculations

• Some believe Satoshi Nakamoto is an individual, while others think it could be a group of people.
• Various people have been suggested as Satoshi, including cryptography experts like Adam Back and Nick Szabo, but none have been confirmed.
• Australian businessman Craig Wright has claimed to be Satoshi, but his claims are widely disputed.
• Satoshi’s Bitcoin holdings are estimated to be about 1 million BTC, making them one of the wealthiest people on paper.

Background and Influence

• Satoshi Nakamoto’s white paper, titled "Bitcoin: A Peer-to-Peer Electronic Cash System," laid the foundation for Bitcoin.
• The identity of Satoshi is linked to a philosophy of decentralization and privacy.
• The Bitcoin project was born from a community of libertarians, anarchists, and transhumanists interested in new technologies and social change.

Summary

• The founder(s) of Bitcoin is known only as Satoshi Nakamoto.
• Their real identity is unknown and remains a subject of much speculation.
• Satoshi created Bitcoin’s original software and white paper, then left the project in 2010.
• The mystery around Satoshi adds to Bitcoin’s unique story and appeal.

Public Companies Investing in Bitcoin

Many publicly traded companies have adopted Bitcoin treasury strategies, buying and holding large amounts of Bitcoin as part of their reserves. Notable examples include:

• Strategy (formerly MicroStrategy): Known as the largest Bitcoin treasury company, it uses equity and debt financing to buy billions of dollars worth of Bitcoin.
• Metaplanet: A Japanese company focused on Bitcoin treasury holdings.
• Coinbase: A major cryptocurrency exchange that also holds Bitcoin.
• Tesla: The electric car manufacturer has invested in Bitcoin.
• Alt5 Sigma: Involved in crypto ventures and token purchases.

These companies collectively hold a significant portion of the total Bitcoin supply, with public companies accounting for over 4.7% of all Bitcoin.

Institutional and Individual Investors

• Institutional investors such as BlackRock and investment products like the Grayscale Bitcoin Trust (GBTC) hold large amounts of Bitcoin, providing exposure to the asset through funds and trusts.
• Bitcoin whales are individuals or entities holding large quantities of Bitcoin, influencing market trends.
• Some governments also hold Bitcoin through legal seizures or strategic purchases (e.g., the United States and El Salvador).

Investment Products and Platforms

• Bitcoin ETFs (Exchange-Traded Funds) allow investors to gain exposure to Bitcoin without owning it directly. These ETFs are available on major stock exchanges and are popular among investors seeking regulated access.
• Platforms like River offer services to buy, hold, and earn interest on Bitcoin, catering to both retail and large investors.
• New apps and services, such as those launched by easyGroup, provide user-friendly access to Bitcoin investments for beginners.

Summary

Investors in Bitcoin include a mix of public companies, institutional funds, wealthy individuals, and governments. Public companies like Strategy and Tesla have made Bitcoin a key part of their treasury assets, while institutional products and ETFs provide broader market access. Individual investors range from small holders to large "whales," all contributing to Bitcoin's growing adoption.

Islamic Scholars' Opinions on Bitcoin Halal Status

• Some scholars, including the Grand Mufti of Egypt and the Fatwa Center of Palestine, consider Bitcoin haram due to its speculative and volatile nature.
• Other scholars, such as Mufti Faraz Ahmed and institutions like Blossom Finance, have issued fatwas stating Bitcoin is halal, viewing it as a valid property and permissible for buying, selling, and payment.
• Mufti Muhammad Abu Bakar, a former advisor to Blossom Finance, supports Bitcoin's permissibility under Islamic law as a money supply.
• Mufti Taqi Usmani and Shaykh Assim al-Hakeem have expressed concerns about Bitcoin's speculative use and anonymity, leading them to consider it haram.

Conditions Affecting Bitcoin's Halal Status

• Bitcoin is generally considered halal when used in spot trading with clear ownership and without interest (riba) or speculative practices like futures, margin trading, or staking.
• Transactions must avoid excessive uncertainty (gharar) and gambling (maysir).
• Bitcoin mining is debated; some scholars see it as halal because it involves legitimate work, while others raise concerns about environmental impact.
• Bitcoin's decentralized nature and fixed supply liken it to "digital gold," which appeals to halal investment principles.

Summary

• There is no unanimous consensus; Bitcoin can be halal or haram depending on how it is used and interpreted by scholars.
• Many scholars agree Bitcoin is halal when used as a direct asset without interest or excessive speculation.
• Some scholars caution against its use due to volatility, speculation, and anonymity issues.

Answer: Yes, Bitcoin can be halal when used properly as a direct asset and not for speculative or interest-based transactions.