Understanding complex technological and financial concepts can be challenging for anyone, let alone navigating them through the principles of faith. A children's book "BITCOIN IS HALAL: Ali and Layla Discover Digital Gold", published on Amazon from Ashik Usman Books, offers a unique approach to demystifying Bitcoin, particularly addressing its potential compatibility with Islamic financial principles. While presented as an engaging adventure for children and young people through the characters of Adam and Layla, this book provides a comprehensive and insightful primer valuable for adults of all backgrounds.
The book's central narrative follows siblings Adam (14) and Layla (13) as they learn about Bitcoin from their parents. Their journey begins with the simple question: what is money, and why does Baba say "Bitcoin"? This relatable starting point quickly evolves into an exploration of fundamental concepts, explained in accessible language with the help of illustrations and engaging analogies.
Demystifying Bitcoin Fundamentals#
Before diving into the "Halal" question, the book dedicates significant sections to explaining how Bitcoin works. Readers, young and old, are guided through topics such as:
- ****The nature of money:**** Moving from bartering to commodity money like gold and silver, and finally to modern fiat money, explaining concepts like inflation and the 'shrinking' purchasing power of traditional currency. This lays crucial groundwork for understanding Bitcoin's potential advantages.
- ****The mysterious origins:**** Introducing Satoshi Nakamoto, the pseudonymous inventor(s) who disappeared after launching Bitcoin, and the motivation behind creating a decentralised digital money system independent of banks and governments, especially after the 2008 financial crisis.
- ****The 'digital wallet':**** Explaining that a wallet doesn't hold Bitcoin, but rather the crucial 'secret keys' – a public key/address for receiving and a private key for spending, emphasising the paramount importance of safeguarding the private key. This introduces the concept of self-custody and individual responsibility for one's assets.
- ****Peer-to-Peer transactions:**** Illustrating how Bitcoin allows direct transfers between individuals anywhere in the world, without intermediaries like banks, potentially offering faster and cheaper cross-border payments.
- ****Decentralisation:**** A core concept, explaining that Bitcoin is not controlled by a single entity but by a global network of computers. This decentralised structure makes it resistant to censorship and single points of failure.
- ****The Blockchain:**** Described as a 'never-ending diary' or a 'giant public ledger' that immutably records every transaction. Its open-source nature means anyone can inspect the code, building trust through transparency.
- ****Miners and Proof-of-Work:**** Detailing the role of powerful computers that verify transactions, bundle them into blocks, and solve complex puzzles to add them to the blockchain. The reward for miners includes newly created bitcoin, which is how new coins enter circulation. The book highlights that the significant energy expenditure in this 'Proof-of-Work' process is a fundamental part of Bitcoin's security, grounding it in the real world. It also addresses concerns about energy use by providing context and noting the industry's trend towards renewable sources.
- ****Scarcity:**** Emphasising the programmed limit of only 21 million bitcoin ever to be created. This fixed supply is contrasted with fiat money that can be printed endlessly, presenting Bitcoin's scarcity as a potential defense against inflation and a feature aligning with the idea of 'hard money'. The concept of 'satoshis' (sats) as tiny, divisible units is introduced to explain how Bitcoin can be used by billions despite the low total number of coins.
Examining the "Halal" Question#
The unique contribution of this book lies in its direct engagement with Islamic financial principles. Through discussions with their parents, Adam and Layla explore key concepts from an Islamic perspective and assess how Bitcoin's features align with them.
- ****Riba (Interest/Usury):**** The fundamental prohibition of Riba in Islam is explained as an unjust increase on a loan or debt without real service or risk-sharing. The book argues that Bitcoin itself, as an asset, does not inherently earn interest; having one Bitcoin does not automatically produce more. This absence of built-in Riba is presented as a significant factor leading many scholars to view Bitcoin as potentially permissible (halal). It is likened more to a commodity or property like gold, which doesn't earn interest but whose value can change based on market factors. Capital gains from buying and selling the asset are distinguished from Riba.
- ****Gharar (Excessive Uncertainty) & Maysir (Gambling):**** These prohibitions are also discussed. While the underlying Bitcoin protocol is clear, the book acknowledges that the asset's price can be highly volatile. Using Bitcoin for genuine transactions or holding it as a long-term store of value is contrasted with speculating wildly on price swings, which could fall under Maysir or excessive speculation.
- ****Transparency and Consent:**** The public nature of the blockchain and the necessity of using one's private key for transactions are presented as aligning with the Islamic principles of transparency and voluntary consent in dealings.
- ****Property Rights:**** The concept of true ownership and control over assets in Islam is discussed. The Bitcoin adage "not your keys, not your coins" is highlighted as demonstrating how controlling one's private keys grants sovereignty over one's Bitcoin, unlike funds held in traditional banks which can be subject to external control.
- ****Adl (Justice) & Ihsan (Excellence):**** Some scholars view Bitcoin's potential to provide financial inclusion to the unbanked as promoting a form of financial justice. The innovative and mathematically sound design of the protocol is seen by some as an example of 'excellence'.
The book concludes this section by stating that many scholars who have studied Bitcoin's core design and principles believe it can be permissible (halal) to own and use, provided it is used within the ethical framework of Islam, avoiding prohibited activities like gambling or fraud. It stresses that the tool itself can be neutral, but its use matters immensely. The book acknowledges that different opinions exist among scholars, reflecting the ongoing nature of this discussion.
Bitcoin in the Real World and Important Considerations#
The book connects the technical aspects to real-world implications. It explores how Bitcoin can potentially help the billions of 'unbanked' people globally gain access to secure savings and easy money transfers using just a mobile phone and internet connection. It also touches on its use in countries experiencing hyperinflation, where individuals might seek a more stable store of value.
Crucially, the book also addresses common concerns and worries:
- ****Criminal Use:**** While criminals have attempted to use Bitcoin, the book explains that the transparent and permanent nature of the blockchain actually makes transactions traceable, and investigators are becoming increasingly adept at linking digital activity to real-world identities. Cash is noted as often being more anonymous.
- ****Energy Use:**** As mentioned earlier, the book frames energy use as essential for security (Proof-of-Work), provides context by comparing it to other energy-intensive industries like traditional banking and gold mining, and highlights the shift towards renewable energy sources in the mining industry.
- ****Volatility:**** The price volatility is acknowledged as a significant risk, particularly for new and smaller investors. The book strongly advises against viewing Bitcoin as a 'get-rich-quick scheme' and emphasises the importance of doing your own research (DYOR), understanding the risks, and only investing what you can afford to lose.
Navigating the Wider "Crypto Jungle"#
A helpful bonus chapter distinguishes Bitcoin from the vast and often confusing world of other digital assets, collectively sometimes called "crypto". It introduces altcoins, meme coins, and NFTs, explaining that many of these lack Bitcoin's unique characteristics: its true decentralisation, open protocol, Proof-of-Work security grounded in energy, and absolute fixed supply. The book cautions that the wider crypto space contains significantly more risk, volatility, and potential for scams compared to Bitcoin. It strongly recommends focusing on understanding Bitcoin first as the most established, decentralised, and secure digital asset.
Accessible Insights for All#
While written with a young audience in mind, using characters, humour, and engaging language, "BITCOIN IS HALAL" effectively explains complex topics in a clear, step-by-step manner. The inclusion of 'Adam's Brain Blasts' and 'Layla's "But Whyyy?" Bubbles' and 'Baba's/Mama's Answer Boxes' provide simple summaries, common questions, and concise explanations. Worksheets at the end serve as useful review tools, even for adults testing their comprehension.
Crucially, the book's strength lies in providing a framework for understanding Bitcoin's core features and how they relate to established ethical and financial principles. For Muslim professionals or those interacting with Islamic finance, the detailed discussion on Riba, Gharar, Maysir, and the alignment with principles like transparency and property rights offers valuable context for navigating the digital asset space according to faith.
However, the fundamental explanations of Bitcoin's technology, its decentralised nature, scarcity, and potential real-world applications are universally relevant. The book makes Bitcoin approachable for anyone curious about digital money, cutting through the hype and focusing on foundational concepts.
Conclusion#
"BITCOIN IS HALAL: Ali and Layla Discover Digital Gold" is more than just a children's book about Bitcoin. It's a thoughtfully structured, accessible guide that covers the essential technical features of Bitcoin alongside a relevant and detailed examination of its compatibility with Islamic financial principles. By presenting these complex topics through the eyes of curious young learners, it manages to be both engaging and informative, making it a valuable resource not only for its intended young audience but also for adults seeking a clear, principled introduction to Bitcoin. It successfully highlights that understanding the 'why' behind Bitcoin, alongside the 'how', is key to navigating this evolving digital landscape responsibly.
Whether you are approaching Bitcoin from a faith perspective, a technological standpoint, or simply seeking to understand what lies beneath the headlines, this book offers a solid foundation, encouraging curiosity and smart, informed exploration.
BITCOIN IS HALAL is available in the original English, Bahasa Indonesia and Arabic, on Amazon (paperback and Kindle), Google Play Books and Apple Books. An audiobook adaptation is currently in development - a collaborative project with @PodSystems.
Check your regional marketplace for local pricing and delivery options. Visit Ashik Usman Books for buying options and download free printable worksheets.
****Reviews for Bitcoin is Halal:**** Akeel Ahame, UK ⭐⭐⭐⭐⭐ Simple Yet Informative Read
Intelligently puts forth all the main concepts in an easily digestible format. Great, simple read!
Abdullah D, USA ⭐⭐⭐⭐⭐ Perfect for kids
Every muslim child needs to read or learn from this book! It's perhaps the only muslim children's book I've come across that not only explains money and Bitcoin, but also explains the concept of riba in an accessible way. My 7 year old loves this book and I even included material from it as part of his home school curriculum. This book also has the advantage of explaining Bitcoin simply so adults that are new to Bitcoin can learn from this too. I highly recommend it for any curious Muslim that wants to learn about Bitcoin
Hansen M, Malaysia ⭐⭐⭐⭐⭐ Must read for beginners
A great introductory book to Bitcoin. It's light and easy enough to understand. I like the family based approach where as a family they try to understand together what Bitcoin is and why it aligns with moral principles.
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