Comment:

From the main article that we discussed today whether cryptocurrencies are haram are
halal. Life is not always black and white, and the cryptocurrency is something in the shades
of grey, the advance in the Blockchain technology is good but still have the risk to lead to bad
outcome. After I gone thru the arguments that stated by the scholars, I more willing to say
that cryptocurrencies are haram in the current stages but might be halal once it is more stable.
This is because there is not only a high degree of uncertainty, risk, fraudulence, but also the
whole cryptocurrencies system is not having deep and systematic control over all the coins.
Also, I think most of u here sure heard about the crypto mining, for example the Ethereum
mining using the gaming graphic card. This mining is creating money from nothing and the
money are not come from our hard work, right? The interpretation of cryptocurrency’s status
is heavily dependent on whether it is seen as a digital asset or a complex and secretive
medium of exchange.
Next, as we know, by owning cryptocurrency, we need to carefully keep our private
key to protect our coins from stolen or virus attacks. Because cryptocurrencies are
decentralised, so if our coins are stolen, then there is nothing we can do to recover our loss.
This actually strengthen my view that cryptocurrencies are haram. Just compare the
cryptocurrency and our normal currency, such as Malaysian Ringgit that we placed in our
bank, if there is stolen case happen, the Bank can actually help us to trace the account. When
we talk about bank, we know that the anti-money laundering is getting more important
nowadays.
Due to the characteristics of decentralised, there is high risk that the money
laundering activity can be conduct thru cryptocurrency. In the recent news in June, China’s
Ministry of Public Security said that its law enforcement arrested more than thousands of
people suspected of using cryptocurrencies to launder illegal proceeds from telephone and
Internet scams. The police busted hundreds money laundering groups who charged their
criminal clients a commission of 1.5% to 5% to convert illegal proceeds into virtual
currencies via crypto exchanges.
https://www.cnbc.com/2021/06/10/china-arrests-over-1100-suspects-for-crypto-related-
money-laundering.html
We can speculate on what value cryptocurrency may have for investors in the coming
months and years, but the reality is it’s still a new and speculative investment, without much
history on which to base predictions. No matter what a given expert thinks or says, no one
really knows. Although bitcoin is legal in most developed countries like US and Japan, but
the legal status of bitcoin still varied dramatically. For China’s case, China heavily restricted
bitcoin without actually criminalising the holding of bitcoins. But what I’m trying to say is
that what if the crypto is banned in sudden by the developed countries and become worthless,
every coin will be valued at zero. That’s why it’s important to only invest what you’re
prepared to lose, and stick to more conventional investments for long-term wealth building.
But it is no doubt that Cryptocurrencies like bitcoin have proven themselves useful for
money movement and speculation, and they’re unlikely to go away. In this era, none of us
can escape from the digital world, as for now, we are using technology to connect via Google
Meet. As our lives converge ever more closely with the digital universe, the drive to invest in
the coins will only accelerate. This is the first trend that shape the future of cryptocurrency.
Next, cryptocurrencies will disrupt the traditional finance because one of the most
attractive point is the ability to efficiently transfer payment across borders with little to no
cost, as well as the foreign currency fluctuations.
From what I noticed, there are abundant of currencies in the crypto world.
Cryptocurrencies will continue to bloom and perish with equal rapidity. In the future, the
small crypto will be perished but the stable coins like bitcoin will still exist and have the
possibility to be the quasi-fiat 准法定货币. Some will become institutionalised investment
assets, although probably not widely accepted payment instruments. From my view, although
cryptocurrencies and digital currencies continue to bloom now, but physical cash will
continue to exist for the foreseeable future, even if the usage declines.