Is Dogecoin Halal?

November 1, 2022

Table of Contents

Dogecoin (DOGE) is based on the popular “doge” Internet meme and features a Shiba Inu on its logo. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience.

Utility:

In a hyper-complex cryptocurrency world, Dogecoin stands out as one of its simplest tokens.

It has no inherent functionality other than its potential as a means of exchange.

For example, the author of this report used Dogecoin to make regular payments to a developer in Indonesia.

To its credit, Dogecoin’s transfer fees were minimal and the transfer itself was instant.

PIF Commentary:

While many people tend to dismiss Dogecoin as an investment because it started as a joke, the origin of this coin is not necessarily a determinant of what it ends up becoming.

From a Halal perspective, speculating about the future of an emerging technology or simply the future price of an item that isn’t prohibited is not haram.

In fact, speculation is a necessary component of most investment activity.

For example, stock investors often value stocks by discounting future cash flows to the present day. future cash flows don’t exist today so a certain amount of speculation is required to value them.

What is haram is Al-Maysir, which is present in zero-sum games where there is no good or service being exchanged.

In the case of Dogecoin, there is a good involved and they are the Dogecoin tokens.

Therefore, PIF finds nothing inherently objectionable about Dogecoin or its utility.