Pro Bitcoin According to Syariah
The growth of the internet and the proliferation of digital transactions digital transactions have overcome many of the limitations of traditional currency exchange systems which are usually burdened with high fees and long processing times. One cryptocurrency, namely bitcoin, was launched to overcome this problem. Bitcoin was created to be the ideal currency that could provide anonymity, inflation protection, and security from theft and fraud. More than just a means of payment, bitcoin can also be adopted as a trading instrument with super high return potential.
Even so, for something that is horrendous in cyberspace and a trending topic, there are still many pros and cons about bitcoin. One party agrees with all the benefits that bitcoin provides, but the other party is still worried about the risks that exist in bitcoin. This chapter will discuss some of the pros and cons of bitcoin, including:
Pro Bitcoin According to Syariah
a. Bitcoin Builds a Good Track Record
Bitcoin has managed to overcome many obstacles in its short history. Bitcoin has weathered all of the negative sentiment over the last decade or so in a difficult financial environment. This shows the strength of bitcoin to survive in the midst of competition with other instruments such as gold, silver, as well as other conventional currencies such as the US Dollar. Bitcoin is now often used as a payment method. More and more vendors and shops are now accepting payments via bitcoin. Various methods, including locking the value at the time of the transaction so that volatility does not affect the calculation of the merchant's profit and loss, have been offered by various e-commerce companies such as bitPay and so on.
b. Bitcoin Offers Hedging and Diversification Bitcoin and cryptocurrency markets can offer a way to minimize the risky effects of these, and protect a trader's portfolio by diversifying across different cryptocurrencies. Hedging is a way to reduce the risk of economic turmoil which usually has a negative impact on other assets
c. Bitcoin Can Solve Many Problems
(1). High inflation: When high inflation occurs quickly, bitcoin and cryptocurrencies can be a good alternative for a store of value because they are not affected by inflation.
(2). Capital Control: Some countries restrict the movement of capital that occurs within their territory. Bitcoin will not be affected by this restriction because it is decentralized which means the government can never interfere in an independent currency like bitcoin.
(3). Asset Confiscation: The government can remove the ownership of many assets, but will not be able to confiscate bitcoin assets, because they do not have the authority and access to track down the owner of each bitcoin (anonymous nature).
(4). High fees: Bank transfer fees can sometimes become a burden in large transaction activities. Bitcoin appears to be challenging that fee structure by offering low-fee transfers.
