Is Bitcoin SV Halal: Is BSV Coin Halal?
In this article we do a complete shariah screening of Bitcoin SV to determine if BSV coin is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in BSV, but have a read and and see if you feel comfortable about it first.
What is Bitcoin SV or BSV Coin?
Bitcoin SV is a hard fork of Bitcoin Cash that prioritizes the strict adherence to the original Bitcoin philosophy of Satoshi Nakamo. Bitcoin SV aims to be a network that prioritizes low-cost peer-to-peer transactions. It is dedicated to increasing the block size and on-chain transaction throughput to support its vision.
The block size limits that were artificially imposed and throttles had been removed, and Script commands and other functions that had been historically disabled or limited had been reactivated. This allowed the network to process thousands of transactions per second while incurring low transaction fees for microtransactions.
In addition to developing advanced functionality, such as token-based smart contracts and computation of data-related use cases.
Further details on Bitcoin SV website
Who Invests In Bitcoin SV?
Is Bitcoin SV Halal: Is BSV Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Bitcoin SV Technology
Bitcoin SV, the protocol, is a time-stamped ledger of unspent transaction outputs (UTXOs) stored in an append-only chain of 512MB data blocks. A network of mining and economic nodes maintains this blockchain by validating, propagating, and competing to include pending transactions (memopool) in new blocks.
Full nodes (also known as “economic nodes”) receive transactions from other network participants, validate them against network consensus rules, double-check double-spend vectors, and propagate the transactions to other full nodes that also validate and propagate. Valid transactions are sent to the network’s mempool to wait for mining nodes to confirm them via inclusion in the next block.
In order to empty the mempool, miners compete to put transactions into the next block, selecting the transaction with the lowest fee to try to beat the previous generation’s hash rate target set by Bitcoin SV’s difficulty adjustment method.
Legitimacy Screening of Bitcoin SV
Bitcoin SV is led by nChain, a research and development technology firm with over 200 engineers and developers building tools, protocols, and applications to support blockchain growth worldwide. This project has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.
Is Bitcoin SV project aligned with Islamic values?
Yes, Bitcoin SV project does align with Islamic values as it is fork of Bitcoin Cash, which is a fork of Bitcoin and should be treated exactly the same as Bitcoin. Therefore, there is nothing against Islamic guidelines with this project as far as we are aware.
Financial Screening of Bitcoin SV:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Bitcoin SV is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.
BSV Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments
BSV can be used within the Bitcoin SV network as a native currency for peer-to-peer payments and value storage. With its larger block sizes and relative Bitcoin, Bitcoin SV aims to offer high throughput and on-chain scalability through unlimited block sizes, reducing the reliance on off-chain scalability solutions for transactions.
Is Staking BSV Halal?
At the time of assessment there is no staking BSV so there is no comment here.
What Does The Muslim Crypto Community Think of BSV Coin?
Islamic Finance Guru (IFG) believes Bitcoin SV: BSV is a halal cryptocurrency based on its method of Shariah complaince screening.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Bitcoin SV: BSV coin is a Halal digital asset based on its Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Bitcoin SV: BSV coin is halal.
Sharlife considers Bitcoin SV: BSV coin as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.
Is Bitcoin SV Halal: Is BSV Coin Halal?
Yes, Bitcoin SV: BSV coin is Halal as the project was a fork, of a fork, of Bitcoin, with the same ecosystem as Bitcoin. The purpose of the later fork was try to go back to the original intent of Bitcoin as explained by the core developers of this project. However, Bitcoin Cash won majority of the networks hashrate at the time so is the stronger project of the two. Overall, BSV should be seen as something very similar to Bitcoin in terms of Shariah compliance and Muslims may invest, trade and stake BSV crypto.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.