|Apr 14, 2018 02:04 PM||By: Jinia Shawdagor | 26927 Views|
Bitcoin’s price spiked from $6,962.6 to $7,720.27 in less than one hour yesterday, the accelerated increase to date. Although uncertain, some consider the sudden price surge has to do with an Islamic scholar deeming cryptocurrency compliant with Islamic Sharia law. Islam is the fastest spreading religion, with over 1.6 billion people worldwide.
The selection of cryptocurrency has been an important issue for Muslims around the world. Currency without fundamental value is forbidden to Muslims, as is lending money with high-interest rates. This method is known as usury.
As the support of the world began to adopt the new digital currency, Muslims were refused to stake their claim in the crypto space – until now. An Islamic scholar described Mufti Muhammad Abu Bakar published a paper addressing the issue, comment:
“In Germany, Bitcoin is accepted as legal currency and hence qualifies as Islamic money in Germany. In many countries such as the US, Bitcoin lacks official legal monetary status but is allotted for payment at a variety of merchants, and hence passes as Islamic customary money.”
While the opinion is purely speculative, many believe the price surge was mainly due to the crypto market finally beginning to 23% of the world’s population.
The theory is more than reasonable, especially regarding Bitcoin’s price is often influenced by external third parties, such as the mainstream media. Soon after the paper was distributed, over one billion dollars in trades were opened across all exchanges and Bitcoin’s price saw a sharp increase over a short duration.
Muslims account for nearly one-quarter of the earth’s population. If used by more Islamic scholars, the decision could open the market to many new investors before avoiding the commodity.
The crypto market’s volatility was certainly demonstrated in 2017, with Bitcoin’s price exceeding $19,000 and the total crypto market cap reaching $800 billion.
Since then, Bitcoin has returned significantly, finding support at ~$6,800. Despite the price surge, many investigators had concluded the market would quickly find protection, but to their surprise, Bitcoin has held fast, currently trading just below $8,000.
At any rate, Bitcoin is here to stay. The Muslim world’s adoption of the crypto revolution is a different step in the right direction towards mainstream adoption.