HALAL Screening Cryptocurrency
Is Bitcoin Cash Halal?
Complete Shariah Compliance Screening of Bitcoin Cash to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Bitcoin Cash
Bitcoin Cash (BCH) is a type of cryptocurrency that was created as a spin-off from Bitcoin in 2017. The main idea behind BCH is to make transactions faster and cheaper. While Bitcoin can sometimes have high fees and slower processing times, Bitcoin Cash allows for larger blocks of data, which means more transactions can be processed at once. This makes it a great option for everyday purchases, like buying coffee or groceries, without the hassle of waiting or paying extra fees.
What makes Bitcoin Cash unique is its focus on being a practical currency for daily use. It aims to be more accessible for people who want to use cryptocurrency in their everyday lives, rather than just as an investment. Plus, it has a strong community of supporters who believe in its mission to promote peer-to-peer electronic cash. So, if you're looking for a cryptocurrency that’s designed to be used like cash, BCH is definitely worth checking out!
Transparent and Credible Team
The report mentions that the founding team consisted of Bitcoin miners and developers concerned about Bitcoin's scalability. It also names Roger Ver as a significant promoter of Bitcoin Cash. However, it notes that Ver did not create the cryptocurrency itself, which was led by a group of miners and developers. The team's background is not as clearly defined as in the "example screening" reports, where specific founders and their experience are detailed.
Score: 65
Clear Use Case or Purpose
The report states that Bitcoin Cash was created to improve scalability and transaction speed by increasing the block size limit. It aims to be an efficient system for fast, low-cost transactions, making it practical for everyday payments. This demonstrates a clear and legitimate use case. This is similar to the "example screening" for Optimism which clearly articulates its purpose.
Score: 85
Absence of Fraudulent Behavior
There is no mention of specific third-party audits for Bitcoin Cash itself. However, the report does note the general importance of audits for cryptocurrencies and mentions that platforms like Cash App take measures to protect users from scams. The lack of explicit third-party audits for Bitcoin Cash is a concern, unlike the "example screening" reports that mention audits by firms like Hacken and BlockApex.
Score: 60
Ethical Practices
The report notes that Bitcoin Cash is criticized for being centralized, with a few individuals controlling most of the network's tokens and hashrate. This centralization contrasts with the ethical practices highlighted in "example screening" reports which note decentralised governance. There are also no specific statements about ethical practices beyond its goal of fast and low-cost transactions.
Score: 60
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Bitcoin Cash Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Bitcoin Cash Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Bitcoin Cash Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Bitcoin Cash Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Bitcoin Cash Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform