Mining: Earning Through Real Work and Energy
Mining is the process of validating transactions and securing a blockchain network by solving complex computational puzzles (Proof of Work), in exchange for newly issued coins and transaction fees. From a Shariah perspective, mining resembles an ijarah (leasing/labor) contract more than anything else: the miner expends genuine computing effort, electricity, and hardware, producing real value in the form of network security and transaction validation. The ruling follows the ruling on the underlying asset itself - if the mined coin is permissible to trade (as many contemporary scholars conclude for Bitcoin), mining is closer to permissible because it is earning through labor, free of riba and gambling.
Holding (HODL): Genuine Ownership Without Debt or Interest
Holding, popularly known as HODL, means buying a digital asset and genuinely owning it for an extended period, without leverage or interest-bearing loans. This pattern most closely matches the concept of true sale and ownership in Islamic jurisprudence: the buyer pays the price, takes possession of the asset, and bears its price fluctuations up and down just like any real owner of a commodity. There is no interest-bearing debt here, nor selling what one does not own. The only condition is the absence of excessive gharar (uncertainty) - the asset must be clearly defined, deliverable, and genuinely disposable by its owner.
Day Trading and Short-Term Speculation: Where Is the Risk?
Day trading means entering and exiting positions within hours or minutes, chasing small price differentials. The Shariah concern here is not buying and selling itself, but the frequent convergence of three factors: leverage funded through interest-based funding rates in futures contracts, excessive gharar arising from rushed decisions and shallow due diligence, and the dominance of gambling-like speculation over genuine investment. When an activity becomes a bet on minute-by-minute price movement disconnected from the asset's real value, it edges closer to maysir (gambling), explicitly prohibited in the Quran.
The Unifying Standard: Asset, Intention, and Discipline - Not the Tool
The Shariah criterion is not the label of the activity (mining, holding, or trading) but three unifying standards: first, genuine ownership of the traded asset rather than a mere bet on its price. Second, complete avoidance of riba, whether in financing or in continuous funding fees. Third, avoidance of excessive gharar that turns a transaction into gambling rather than legitimate commerce. Whoever applies these three standards to any digital activity has moved closer to what is permissible, regardless of the technical label attached to it.
Qist's Position: Murabahah on a Genuinely Owned Asset, No Leverage, No Riba
Qist builds its model on traditional Islamic murabahah applied to the blockchain: the seller genuinely owns the digital asset (BTC or ETH) before selling it, sells it to the buyer at a deferred, installment-based price, and settles in a stablecoin (USDC) rather than accumulating interest or leverage. Qist's smart contract has no interest-bearing borrowing mechanism and no instant liquidation without notice - instead, a three-day grace period precedes any liquidation, out of fairness to the debtor. This places Qist closer to the legitimate holding model blended with installment convenience, far removed from the risks of excessive day trading.
Discover Qist: qist.info
Mining, holding, and trading are three different ways to engage with digital currencies, but the Shariah ruling follows genuine ownership and freedom from riba and excessive gharar - not the tool itself.
By the Numbers: Verified Facts
According to AAOIFI Shariah Standard No. 59, issued in 2025 on digital currencies, a digital currency is considered valuable property (mal mutaqawwam) if it has legitimate utility and general acceptance - a description many contemporary scholarly bodies apply to Bitcoin and Ethereum. The global Islamic finance industry is valued at roughly USD 4 trillion, and the world's Muslim population is estimated at approximately 1.9 billion people, representing a massive potential market for Shariah-compliant finance. Bitcoin is capped at a maximum supply of 21 million units, giving it a scarcity profile similar to precious metals historically. Qist charges just 2% in fees per murabahah transaction, with a 3-day grace period before any liquidation action.