E-Dinar Coin

E-Dinar CoinCategory: QuestionsE-Dinar Coin
Mohammed asked 7 years ago

Assalamu Alaikum, My question relates to E-Dinar Coin – is it halal to purchase and use as a means to earn a living and make profit?
To give you some background about this here is some information. Edinar Coin (EDR) is a form of crypto-currency, which means it is a virtual currency that can be converted to GBP, USD or whatever other currency you want.
The thing here is though, with EDR because it is a relatively new crypto-currency it offers an incentive to buyers, that if they purchase say 100 EDR’s than in one month they will earn a profit of 21% guaranteed, hence after one month they will own a total of 121 EDR’s. This is simply because it is a new currency and it wishes to go big – it offers a reward for owning it. Furthermore, the value of the currency can fluctuate but is in the range of USD$1. 
Now brothers ask the question where does this 21% profit come from. Here it is important to understand that the process which creates this 21% is called ‘mining’. This is where a set of people/machines are sitting/programmed to verify transactions involving EDR’s. Once they are verified, they are placed in an open account which is available to be seen by the entire world, but is anonymous. This open account is known as the blockchain. This is they way they generate a profit of 21% monthly.
You can get more information on this by visiting the information page at http://www.edinarcoin.com/news
Clearly this is not interest (riba’a), as their is work that is being put in to create a profit. However it is also important to get a scholars view on this question hence i ask it to you – Is purchasing and generating a profit from e-Dinar Coin (EDR) halal?