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Is crypto mining halal?

A Sapphire-brand, Radeon HD 5570 video card for computer graphics
Photo: Evan-Amos, Public domain via Wikimedia Commons

Yes, in principle. Most scholars who accept cryptocurrency see mining as halal work: you provide computing power that verifies transactions and you're rewarded for it. It becomes haram when you mine a coin built for haram purposes, use electricity you don't pay for, or fall for "cloud mining" schemes that are really scams.

What mining actually is

Mining means running computers that check and record transactions on a blockchain. In proof-of-work networks like Bitcoin, miners compete to add the next block and receive new coins plus transaction fees. Scholars who allow it compare this to being paid for a service, or to a reward for completing a task. Islam praises earning through your own effort: the Prophet ﷺ said nobody eats better food than what they earned with their own hands (Sahih al-Bukhari 2072).

Note that scholars still differ on cryptocurrency itself. Some see major coins as valid property, others hold back because of speculation and lack of backing. If you follow the cautious view, mining follows that ruling. For the wider question, see Do I pay zakat on crypto?

The coin matters

Mining is only as halal as the network you support. Avoid coins whose main purpose is gambling, adult content or interest-based lending, and steer clear of meme tokens designed for pump-and-dump schemes. Some Islamic finance advisors publish screening reports on major coins, which can help you decide.

Electricity and honesty

Mining uses a lot of power. Running rigs on your employer's electricity, a university network, a shared building supply or a landlord's bill without permission is taking someone else's property. The Quran is direct about this.

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَـٰطِلِ إِلَّآ أَن تَكُونَ تِجَـٰرَةً عَن تَرَاضٍ مِّنكُمْ "O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent..." Quran 4:29

The same applies to hidden mining software on other people's devices, which is plain theft. Using someone's network without asking is covered in Is it haram to use my neighbor's Wi-Fi without asking?

Cloud mining and staking

Many "cloud mining" offers promise fixed daily returns for a deposit. A guaranteed return on money you hand over looks a lot like interest, and many of these schemes are outright frauds. Real cloud hosting, where you rent identified machines and receive whatever they actually mine, is a different thing and can be fine. Staking and pool mining are debated; pools that share real rewards by work contributed are generally accepted, while lending-style "earn" products often aren't.

Key points
  • Mining is a reward for real work, so many scholars allow it.
  • It follows the ruling on the coin you mine.
  • Only use electricity and hardware you own or pay for.
  • Avoid cloud mining with fixed guaranteed returns.
Tip: Before buying mining hardware, work out your real electricity cost. If the numbers only work by using someone else's power, that's your answer.

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