In today’s advanced technology, Bitcoin is a form of
digital currency with virtual action and a synonymous of Crypto-asset. Its idea
was first discovered in 2005 while conceptually it had been developed till 2010
and the preparation for its execution took place till 2013. The actual
operation of Bitcoin began in 2013 with a roaring price of $ 770 per unit. The
growth of the Bitcoin is among the fastest of the financial components of the
contemporary world. Despite its successful journey it is not free from any
undesirable catastrophe, one may be due to regulatory weakness, inadequate
operational mechanisms, malpractices and lack of market confidence. Can this
digital form of currency be recognized under the Shari’ah principles? if yes, what are the risk factors in it?
And how shall a catastrophe be managed? An attempt is however is made in this
research to establish aIslamic alternative
model of Bitcoin, its risk factors and to analyze on how those risks may
possibly be managed by Takaful system?