hello best friend of steemit recently, a Muslim scholar declared bitcoin permitted in sharia law. This statement has the potential to open the crypto currency market for investments of 1.6 billion Muslims worldwide.
Publication of research on whether halal or haram bitcoin has brought unprecedented price increases to bitcoin. The surge value is over 1,000 US dollars in less than an hour.
This has led some analysts to speculate news on the bitcoin shariah law may have contributed to the price spike. The study of bitcoin permitted in sharia is conducted by Muhammad Abu-Bakar of Blossom Finance in Indonesia.
He explored the functions of bitcoin and crypto currency to determine whether they fit the very strict definition of Islamic money. Blossom Finance CEO Matthew Martin said some of the fatwas issued by prominent Muslim scholars about bitcoin are not complete enough.
"With all the confusion out there, we want to offer clear guidance that is supported by solid research and benefit to lay people and Islamic finance practitioners," he said, quoted in The Independent on Friday (14/4).
The study authors point to the fact that bitcoin is recognized as a legal currency in Germany so that it qualifies as Islamic money in the country. "Bitcoin is allowed in principle because bitcoin is treated as a tool that has value by market prices on global exchanges and is accepted as a means of payment in various trades," said the study.
In addition, many private individuals accept bitcoin as a means of exchange in their personal transactions. Bitcoin's dramatic price spike on Thursday, (12/4) was largely attributed to these findings. Within an hour, bitcoin trades worth more than a billion dollars are listed on the exchange. This is the largest one-hour trade volume in history.
The semi-anonymous nature of bitcoin is not likely to determine who is behind the trade. But some analysts have speculated significant investments in bitcoin may have been influenced by positive news.
Bitcoin prices are often affected by positive or negative news in the crypto currency space. This latest study may have an impact on the increase and can help contribute to future profits.
"Many are speculating about bitcoin's positive sentiment, and that may be related to Sharia law," said Smart Valor's fintech startup CEO Olga Feldmeier to The Independent.