Is Dogecoin Halal?
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.
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.
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.
Is Dogecoin Halal?
From the above analysis, Practical Islamic Finance rates Dogecoin as:
Comfortable to invest in from a Halal perspective.
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