191. Bitcoin and Islamic Law with Muaawiyah Tucker 

Thank you for having me on your show.

One of the best if not the best episodes I have ever watched. I had a good knowledge about Bitcoin but this time I really learned a lot specially the Islamic view of Bitcoin, excellent seifedin for giving him this oportunity.

This was really a most interesting and enlightening conversation.

Really good talk brothers , keep up the good work

03:30 🌍 Muaawiyah Tucker, an Islamic scholar and Bitcoin advocate, shares his background from being raised Christian to converting to Islam and studying Islamic law in Saudi Arabia. 08:29 💡 Muaawiyah's initial interest in Bitcoin stemmed from a desire to escape traditional banking systems, which he had reservations about due to past negative experiences. 11:02 🔄 Muaawiyah highlights the resistance some individuals, including scholars, may have in accepting Bitcoin due to a lack of technical understanding and reluctance to admit they may have missed out on its early adoption. 14:59 💰 Muaawiyah stresses that money is not merely a belief system, but rather a system with objective properties, and explains that the increasein the money supply is often overlooked in traditional economic education. 19:22 ⏳ Muaawiyah discusses the challenge of accepting that one may have made a mistake in not investing in Bitcoin earlier, which can be a barrier to adoption for some individuals, even if it means potentially missing out on future gains. 21:26 🕌 Saudi Arabia transitioned from silver-based currency to Fiat due to depletion of silver during Hajj seasons. They introduced a special Hajj currency, pegged to silver, for transactions. 23:31 💰 Scholars concluded that the Hajj currency acted as a proxy for silver, following the same rules. It was successful due to speed and divisibility, leading to its adoption by locals beyond Hajj. 24:57 ✅ Scholars issued a fatwa allowing the use of Fiat currency, considering it permissible as a medium of exchange, based on the information provided by the central banker. 26:34 🏦 Prior to understanding Bitcoin, using Fiat with trust in the system seemed the only option. Learning about banking systems intensified skepticism, highlighting the need for a trustless alternative. 28:53 ⛓️ Issuing a gold-backed cryptocurrency still involves counterparty risk and does not address the core issues of Fiat. Bitcoin, being trustless, offers a unique solution. 42:34 🏦 The creation of dollars is primarily through the creation of loans, not just through physical printing. This process is central to the existence of fiat currencies. 46:17 ₿ Living on Bitcoin is a viable option for those seeking to align with Islamic principles. It involves using Bitcoin for transactions, even if some minimal interactions with the fiat system are necessary. 49:44 💰 Choosing the lesser of two financial evils is a valid Islamic principle. In certain situations, using fiat currency may be a practical necessity, but it should be minimized as much as possible. 54:47 🏠 Renting is a halal alternative to taking a mortgage, and it should be considered a legitimate option. It avoids participating in theriba system while providing a place to live. 01:02:56 ₿ Bitcoin offers a way out of the system that imposes a tax on Muslims. Without Bitcoin, Muslims may find themselves in a continuous financial struggle due to the inflationary nature of fiat currencies. 01:03:22 💰 Bitcoin provides a viable alternative for Muslims to save and build wealth, countering the challenges posed by traditional fiat currency and banking systems. 01:04:18 🌐 Bitcoin's unique properties, including instant global transactions and resistance to inflation, make it a powerful tool for Muslims seeking financial independence. 01:05:26 📊 A comparison reveals that consistent investment in Bitcoin has significantly outperformed traditional investment options like S&P 500 and gold over the years. 01:07:21 🏡 Tokenization of real-world assets using blockchain technology, such as properties, presents a promising avenue for increasing liquidity and investment opportunities. 01:08:33 🔄 Islam considers everything permissible unless there are specific rules declaring it Haram. Bitcoin is Halal by default, and the burden of proof lies on those claiming it to be Haram. 01:11:17 🔒 Bitcoin's decentralization and absence of privilege make it a fairer and more transparent currency compared to both fiat currency and other cryptocurrencies. 01:15:23 🪙 While tokenization of real-world assets holds potential benefits, the need for government backing or enforcement is essential for its practical implementation. 01:19:33 🚫 Most altcoins and tokens lack intrinsic value and are often issued to generate funds for projects, leading to potential scams or projects without real-world utility. 01:24:23 💡 Building on Bitcoin's philosophy, Muaawiyah Tucker proposed a system where tokens are earned through work or reputation, avoiding the need for token issuance. 01:24:50 🔄 Muaawiyah advocates a token tied to real-world work, integrating proof of work, rather than creating new tokens without a clear purpose. 01:25:31 ₿ He emphasizes the success and reliability of Bitcoin's ecosystem, suggesting it's a tested alternative to new, unproven tokens. 01:26:12 🏢 Tokenizing land registries or assets on a blockchain presents challenges, especially with immutable ledgers in cases of disputes or fraudulent transfers. 01:27:48 💰 Muaawiyah argues that transacting with banks is inefficient, citing delays and challenges in simple money transfers as a reason for adopting Bitcoin. 01:32:53 🔄 Muaawiyah asserts that unless a feasible alternativeto Bitcoin is presented, there's no practical choice for Muslims but to embrace it as an exit from the current interest-based credit system. 01:34:42 🔗 The onus is on critics to prove why sticking to fiat debt slavery is superior to adopting Bitcoin, which offers a more just and transparent alternative. 01:41:14 💵 Muaawiyah recommends using the value of gold, not silver, as the measure for paying Zakat with Bitcoin due to its consistent value over time. 01:44:40 📜 Muaawiyah Tucker addresses the argument about Bitcoin's volatility in relation to Islamic principles. He points out that silver, accepted as currency in Islam, has comparable volatility to Bitcoin, thus making the acceptance of Bitcoin consistent. 01:48:55 💡 Setting prices was not within the Prophet Muhammad's remit, highlighting that market volatility existed in early Islamic times, and addressing it was considered unnecessary, as it was viewed as part of the market's natural dynamics. 01:50:29 📺 Muaawiyah Tucker runs a RU-vid channel called "BTC Divided by Zero" where he provides a comprehensive educational resource on Bitcoin from an Islamic perspective. He has nearly 200 videos explaining Bitcoin from first principles and addresses objections from scholars.

شكراً لكم. حلقة رائعة ومفيده

Very interesting and educational. High quality content as usual 💯

awesome discussion. Thanks

Allhumdulilah nice to see you Muaawiyah on Saifdeen

Alhamdulillah.Two of my favourite brothers talking about bitcoin.Next in line....Harris Irfan Saif...insyallah.

Great episode very informative

Well done guys , mashallah , Great content .

Great discussion, thanks!

We should educated scholars of al islam like Shyak Asrar Rashid from Birmingham uk have him on saifedean ammous please

Exactly they have to acklnowedge they missed the boat so true!

العلم نور والجهل ظلام I totally agree , fiat is haram cuz of the interest creation out of it and because it’s free and easy to create . الله يهدينا ويهدي الجميع

Love metaphors of Saif, fiat is like halal pork 😊

@58:05 Necessity is the mother of invention

MashAllah - in retrospect it was inevitable

@1:15:20

Very interesting, so it is basically a case of innocent until proved guilty, by default bitcoin is halal and you would have to make a case for why it is haram?

Translate your latest books into Portuguese (Brazil) 😢🙏 🇧🇷

46:25 "since 2020 ive decided to live 100% on bitcoin " bro how does on achive this level ?😅

They can close down the platform it's risky

What good has Islam added to humanity?

There’s Islamic coin ISLM

@32:20 the analogy is so funny and true. Nicely said!