I recently came upon some NFTs that caught my eye. I don’t have any interest in trading or gambling with it. Can it be considered as those Pokémon cards that we used in our childhood. I wanted to know more about its trade through the shariah law. Can someone from the community, tell me more about it.
My understanding of NFTs (which is probably quite limited) is that it is more similar to an asset or commodity than it is a stock. So I kind of think of it like a car or something. It’ll probably appreciate/depreciate in value over time. So the question becomes the nature of the item the NFT represents, and whether you are comfortable buying and selling things of that nature. Having said that, I don’t think there’s a purification factor to any earnings you can make from selling an NFT (this might actually go under assets/possessed cash when doing Zakat calculations). But I would love to know what you think, and how others respond.
I put NFT into the exotic ‘assets’ category. Absolutely 0 interest in them. I am not sure why there is so much fascination with all these new age things when the boring high quality companies can be invested into for wealth preservation / growth.
Have a read hope it answers your question
Totally agree investing in stocks is the most fruitful way, in addition it serves the society
But if you read the history there were times when people used to tie the worth of things to some big or precious stones then gold and then came paper money which governments inflate mercilessly and we are left with loss
imo value of things have been quite arbitrary regarding this it maybe worth it to get into the hype
Oh nice! Thanks for sharing this Abdullah
So i read this article by Joe Bradford it says shares, real estate or art bought from illiquid market are exempted from zakat
Considering nfts as art but for nfts we know the floor price i-e minimum value the last nft of a particular class was sold for
So we know the floor price do nfts still considered illiquid asset and we need to pay zakat?