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The values of the Cypherpunk movement align closely with principles introduced by Islam to humanity. Historically, both Islam and the Cypherpunk ethos have addressed foundational issues in social, moral, and technological domains, emphasizing freedom, non-coercion, and the empowerment of individuals to trade and invest in sound money. The last significant global transition to hard money occurred during the 7th century when Mediterranean communities came under Islamic governance. Umayyad Caliph Abd al-Malik (685–705) implemented sweeping reforms, replacing Byzantine-Roman copper-diluted fiat coinage with Islamic pure gold and silver coins. This sound money standard promoted economic stability and fairness, gradually phasing out unreliable Roman currency.
The Islamic hard money standard laid the foundation for the development of capitalism and industrialization, enabling significant global human advancement . However, the so-called “Progressive Era” (since 1890s) marked a departure from this path, leading to a series of wars, state encroachments, and threats to human civilization. Bitcoin represents a corrective measure—a return to sound money principles.
Just as Islamic civilization once embraced sound money, contemporary Islamic culture has a responsibility to adopt contemporary sound money technologies. Bitcoin stands as the most legitimate and digitally appropriate choice. By embracing Bitcoin, Islamic societies can liberate themselves from oppressive centralized systems while contributing to the advancement of this technology for the benefit of humanity.
Read my full paper:
The Cryptic Continuum
Exploring Bitcoin from Quranic Enigma to Cypherpunk Revolution
For The Muslim Muslim Summit
Dallas, 2025
By Bashar Humeid
X:@afreedommachine
Thefreedommachine.org
Preface
This paper’s title might be misconstrued as another attempt by an overzealous Islamic scholar to attribute modern inventions to Islamic origins. However, this work eschews such missionary approaches, which have often proven fallacious and fostered intellectual complacency and unwarranted superiority complexes.
Instead, the objective is to comprehend Bitcoin, contextualize it historically, and explain its significance in human history and its profound connection to Islamic thought.
This paper is grounded in two fundamental premises. Firstly, it posits that Bitcoin stands as one of the most revolutionary socio-technological developments in history. Secondly, the article asserts that Islam, in its capacity as a religion that renews and reinvigorates the Abrahamic monotheistic message, occupies a central and pivotal role in the landscape of human technological and moral history and knowledge. These two axioms serve as the cornerstone for the article's subsequent arguments and analysis.
While this novel perspective may not resonate with numerous Islamic and modernist thinkers, its reception is inconsequential. Major historical intertwined concepts and transformations, such as the proliferation of Islam, capitalism, or pivotal innovations like agriculture, the printing press, the Internet, or Bitcoin, operate and shape the flow of history, independent of individual opinions, preferences, or ignorance. Ultimately, the practical implications related to bitcoin will reshape our reality and will prevail, despite resistance to change or reluctance to acknowledge it.
The Mystical Power of Bitcoin
if you've successfully navigated the world of Bitcoin and adhered to its foundational principle—“Not your keys, not your coins”—then you’ve likely come to understand why Bitcoin has often been referred to as "magic internet money." It carries with it an air of mysticism and wonder that captivates those who truly grasp its potential. For those unfamiliar with this concept, the "keys" in question are typically a series of twelve random words, seemingly unrelated and without any apparent meaning. Yet, these words hold the power to unlock something extraordinary. They serve as the gateway to a revolutionary form of value storage and transfer—something unprecedented in human history. In many ways, these keys are akin to the magical phrase from the tale “Ali Baba and the Forty Thieves” in One Thousand and One Nights: “Open, Sesame.” Just as those words revealed a hidden treasure within the mountain, these cryptographic keys grant access to a digital fortune. However, Bitcoin's magic surpasses even that legendary story. In Ali Baba’s tale, the thief’s treasure was confined to a single cave—a physical location that he had to revisit repeatedly. This limitation ultimately became his downfall, as it exposed his secret and led to his undoing. By contrast, Bitcoin transcends physical boundaries entirely. Its vault is not bound by geography or material constraints; it exists in a decentralized digital realm, accessible from anywhere in the world by those who possess the keys. Unlike Ali Baba’s cave, Bitcoin’s strength lies in its resilience and freedom from physical boundaries. Its magic is not just in its ability to store value but in its potential to transfer it without permission.
In fact, millions of people today store their savings in unlimited amounts on the Bitcoin network using decentralized wallet keys. Thereby they can transmit Bitcoin quickly around the globe and even into space, reaching any place with internet access. In doing so, users do not need to rely on the services of a company, bank, state, or other intermediaries, and thus they are not limited to a specific location to store their savings.
To understand how this revolutionary form of money came about, we must clarify some key concepts:
What is Money?
Saving money is essentially a way to store energy. We expend mental or physical energy through work, earn money as a result, and then preserve this money—a representation of our expended energy. Throughout history, people have recognized money, in its various forms, as a measure of this energy. When we spend money, we extract the stored energy, exchanging it for goods or services provided by others. Thus, saving and spending are primarily about conserving and transferring energy.
Money has evolved through various stages throughout history. Traditionally, energy was conserved and spent through mediums like gold or silver. Later, government-issued paper money emerged, prohibiting the circulation of alternative currencies. Over time, money transformed into bank records, eventually becoming digital. Today, banks create money by issuing debt, often without physical representation or real production limits. This has led to inflation and currency devaluation in many countries, as our current financial system is not based on a gold standard or any clear standard, but rather on the interests of central banks and politicians.
What is Bitcoin?
Bitcoin is now the world's largest decentralized network for storing and extracting vast amounts of energy. It comprises extensive databases and sets of numbers forming secret keys for unlimited users. Enormous computational energy is expended to solve mathematical problems, from which these Bitcoin secret keys are derived. For the first time in human history, we can store and extract vast amounts of energy that are not bound to a physical substance like gold, operate independently of cash or databases reliant on state authority or banks, and are not susceptible to inflation-induced value loss, like the money issued by central banks.
The Bitcoin network operates under strict mathematical rules governed by an open-source computer program, used by hundreds of millions of users and miners for over 15 years. This experiment, initiated by Satoshi Nakamoto in 2009, has evolved into an undeniable financial reality.
Despite major investment companies like BlackRock and powerful states like the United States of America adopting Bitcoin through ETFs or sovereign reserve funds, its true importance lies in its nature as a decentralized digital medium outside any specific entity's control. What sets Bitcoin apart from other digital currencies is its limited supply—capped at 21 million units—making it the world's rarest hard currency. As of 2024, Bitcoin has become even scarcer than gold, with its production rate falling below 2% of the total mined units. This scarcity will increase over time due to the network's governing rules, which cannot be altered without unanimous user agreement—a near impossibility.
Quranic Enigma And The Foundation Of Cryptology
In the Quran, we read that the creation of the universe occurred with a single word: "Be" (كن). This divine command, composed of just two letters in Arabic—Kaf and Nun—unleashed enormous energy that brought forth our vast cosmos. The modern mind dismissed this concept as a myth or at best as mere metaphor.
However, the advent of Bitcoin has provided us with a unique lens through which we can better grasp such profound ideas. Bitcoin technology offers a contemporary parallel that helps us comprehend the depth of the Quran and former other sacred scripts.
Just as the Quranic "Be" initiated a complex and far-reaching process of creation, a simple line of script set Bitcoin in motion, spawning a new economic paradigm.
The Quran and Abrahamic religions ascribe profound significance to language. The Gospel of John begins with the powerful declaration, "In the beginning was the Word". The Quran, among sacred texts, uniquely employs language, writing, and symbolism in ways that continue to challenge both ancient and modern interpreters. It stands as the first text in history to present itself as a purely linguistic challenge to humanity, inviting attempts to produce something comparable. This distinguishes it from other religious narratives, which often emphasize material miracles of prophets and saints. The Quran, embraced by billions throughout history, elevates language itself as the cornerstone of its miraculous nature, serving as both evidence and catalyst for the immense human energy of billions of believers who have altered the course of history.
The presence of enigmatic letter combinations opening twenty-nine chapters (Suras) of the Quran (e.g., "الم" [Alif Lam Mim]) is a unique phenomenon lacking historical precedent in earlier sacred texts. These combinations of letters, which are called "the keys of the surahs" (mafātīḥ as-suwar,”مفاتح السور”) are disjointed letters, and are found at the beginning of 29 surahs in the Quran. This feature has perplexed commentators, who have yet to provide a definitive explanation for it. The prevailing interpretation suggests these disjointed letters serve as a challenge to those who doubted Muhammad's (PBUH) prophethood. Unlike previous prophets who performed tangible miracles, the prophet of Islam presented linguistic texts as evidence of his divine mission. These letters symbolize that while language components are universally accessible, the challenge lies in arranging them to rival the Quran's captivating power that has inspired billions of believers. This interpretation finds support in Surah Yunus (verse 38):"Or do they say, 'He has fabricated it?' Say, 'Then produce a surah like it, and call upon whomever you can besides God, if you are truthful.'" (أَمْ يَقُولُونَ افْتَرَاهُ ۖ قُلْ فَأْتُوا بِسُورَةٍ مِّثْلِهِ وَادْعُوا مَنِ اسْتَطَعْتُم مِّن دُونِ اللَّهِ إِن كُنتُمْ صَادِقِين )
This verse underscores the potency of words and the transformative energy unlocked by letter combinations, highlighting the Quran's unique linguistic miracle that inspired and mobilized the physical and intellectual energies of tens of billions Muslims who have lived throughout history, from its revelation in the 7th century till today.
However, the parallel between religious texts and Bitcoin extends beyond mere unlocking and transformation of energy. There are profound historical, philosophical, technical and artistic dimensions to the role of the Quran in the pre-history of Bitcoin. The enigmatic disconnected letters in the Quran have long been a subject of contemplation, interpretation, and speculation, with Islamic scholars attempting to decipher their meaning through various methods. One approach, particularly relevant to our topic, involves the use of alpha numerical calculations (حِسَاب ٱلْجُمَّل, ḥisāb al-jummal) also known as Abjad numerals—a system of assigning numerical values to letters—to interpret these cryptic symbols.
The Abjad numerals calculation method was used in Semitic languages and India and continued to be developed by Muslims in financial transactions, astronomy, and other sciences. A notable historical example of this system is found in "Al-Qanoon Al-Masudi" by the polymath Abu Al-Rayhan Al-Biruni (d. 1048 CE). He used Abjad numerals for his "three-point observation" method to calculate celestial motions and orbital eccentricities. Additionally, he applied this system to arithmetic operations, angle calculations, arc trisection, and shadow analysis.
Intriguingly, Bitcoin employs a similar concept. To enhance user-friendliness, Bitcoin developers implemented a method akin to Abjad numerals in the BIP 39 protocol, selecting 2048 distinct English words to represent numerical values, thereby generating unique keys for each new wallet and simplifying the mnemonic process.
In fact Bitcoin technology, with its intricate components, relies on computer cryptography. The contributions of Muslim scholars like Muhammad ibn Musa Al-Khwarizmi (d. 850 CE) to computer science are well-known, due to his role in popularizing and developing the concept of zero and algorithms, a term derived from the Latinized version of his name, "algorithmi”
What is less recognized is that cryptology as an independent science was created in the Islamic context. Muslim scholars termed this science ʿIlm at-Taʿmiya (علم التعمية). Ibn al-Durahim (d. 1360 CE) was long considered, by specialized scholars, the founder of cryptology, with approximately twenty treatises devoted to cryptology, like "Treasure of Pearls in the Letters of the Beginning of Surahs" (كنز الدّرر في حروف أوائل السور).
But a discovery in 2008 revealed that Al-Kindi (d. 873 AD) had already employed frequency analysis (تحليل التكرار) in cryptology. His treatise, "On Decrypting Cryptographic Messages (رسالة في استخراج المعمى) , dates back to the 9th century CE, establishing him as a pioneer in the field. That is, the science of cryptology has roots that are at least five hundred years deeper in Islamic history than previously thought.
David Kahn's seminal work, "The Codebreakers," corroborates the Islamic origins of cryptography. He cites Ibn al-Durahim's book “Clear Chapters Goals on Solving Ciphers” (مقاصد الفصول المترجمة عن حل الترجمة) which details eight encryption systems, including substitution ciphers. These systems closely resemble the Tabula Recta, often attributed to Johannes Trithemius (born 1462), 152 years after Ibn al-Durahim's birth. Clearly, Ibn al-Durahim's work predates Trithemius' "invention". Tthe Tabula Recta forms the foundation for modern computer programming and encryption techniques.
Why is Islam Cryptology-Friendly?
Research into the history of cryptology, mathematics and computers soon leads to the Islamic civilization. This is not just a historical coincidence. The flourishing of cryptography, linguistics, and mathematics under Islamic civilization is a phenomenon worthy of contemplation and is rooted in Islamic doctrinal foundations.
Before delving into these foundations, it's important to clarify that encoding is the basis of both language and mathematics. As encoding evolves and linguistic concepts are abstracted into simpler symbols (like numbers), we become capable of expressing larger values, thereby developing our understanding of the universe, attempting to grasp its immensity, and interpreting its laws through equations dealing with these enormous values. The connection between language and mathematics is also evident when examining the history of Muslim scholars and Quranic interpreters, such as Fakhr al-Din al-Razi (d.1209), who, in addition to being a Quran exegete, was also an astronomer and mathematician. Other notable scholars like Al-Razi, Ibn Sina, Thabit ibn Qurra, and Ibn Malka al-Baghdadi, not only contributed to the discovery of the laws of motion before the English scientist Isaac Newton (died 1727), but were also prominent in Quranic exegesis and philosophy.
The Quranic account of Adam and Eve’s creation establishes a profound doctrinal link between language—fundamentally, the capacity to encode meaning—and humanity’s role as stewards (khalifah, خليفة) on Earth. This narrative not only positions language/encoding as a divine gift central to human agency but also frames the act of encoding within the context of moral freedom and intellectual responsibility.
By emphasizing Adam’s mastery of "the names" (Quran 2:31-33)—the Quran elevates encoding as both a sacred trust and a defining feature of human existence. The Quran explains that when God announced to the angels His intention to place a vicegerent on Earth, the angels objected, saying, "Will You place therein one who will spread corruption and shed blood?" In response, God taught Adam "all the names," which can be described as the ability to encode.
The surah further explains that when objects were then presented to the angels and they were asked to name them, the angels were unable to invent names for things beyond their knowledge. Adam, however, succeeded in this test. As a result, Adam was honored by having the angels prostrate to him, except for Iblis (Satan), who refused to honor Adam based on his origin from clay, while he was created from fire. Satan then vowed to lead humanity astray.
The story doesn't end as expected with Adam beginning his role as steward on Earth. Instead, it shifts to another scene where Adam and his wife Eve are in Paradise, forbidden from eating the fruit of a certain tree. One might wonder: Why weren't Adam and Eve sent directly to Earth to begin their role as stewards? The answer becomes clear in the following scene, where Satan successfully tempts them to taste the forbidden fruit. Only then are Adam and Eve sent down to Earth, as was originally planned.
At first glance, humanity’s descent to Earth might appear punitive, but a deeper examination of the Quranic narrative reveals a purposeful divine design. Adam and Eve’s autonomous decision to eat from the forbidden tree marked the fulfillment of their preordained role as stewards (khilāfah) on Earth. This story outlines a logical sequence of traits essential to stewardship: after being granted the creative faculty of language (manifested in Adam’s ability to encode the unknown objects into language), humans gained the capacity to exercise free will (displayed in their ability to choose to obey or disobey). This free will distinguishes them from other creatures, which are capable of learning and executing tasks but devoid of true creativity, consciousness, or moral agency. Unlike programmed systems, humans bear legal and ethical responsibility—a privilege rooted in their divinely endowed autonomy.
These pivotal verses of the Quran weave together seemingly unrelated concepts into a coherent theology of human stewardship. It positions the capacity for encoding—as the prerequisite for stewardship, enabling humanity to transcend the “bloodshed and corruption” forewarned by the angels (Quran 2:30). The Quran further ties free will to human stewardship: by experiencing trial and error (symbolized by the forbidden fruit), humans become fit for their role as Earth’s custodians. Only beings capable of choice can be held accountable, and only accountable beings can wield power.
Thus, the Quran grounds humans stewardship and transcendence of “bloodshed and corruption” in an interdependent set of qualities:
Language (symbolic encoding and creativity)
Free will (moral autonomy)
Accountability (responsibility for actions)
Bitcoin could not have existed without these three qualities of humans. Language is the bedrock of cryptography, it is thereby the technological infrastructure of Bitcoin. Free will is the moral compass of Bitcoin and the reason why it was created in the first place. And the responsibility for actions is the operating system of Bitcoin (more about this in the section on “Proof of Work”).
Tawhid as a Mathematical Concept
As we have demonstrated, language—specifically the creation of words—represents the most fundamental form of encoding. Its more advanced evolution is digital encoding, which serves as the foundation for mathematics, programming languages, and modern computing. Digital encoding is a continuation of the encoding process that has driven human civilization forward, ultimately shaping the world we live in today. This progression has culminated in the encoding of energy into digital form, encapsulated in a single revolutionary concept: Bitcoin. This represents the most sophisticated and advanced form of encoding humanity has achieved to date.
Here, we must explore another central theme of the Quran: Tawhid—"The Oneness of God" or "Monotheism." This profound concept, deeply rooted in the Quran, bears a direct connection to mathematics and, as we will demonstrate, to Bitcoin. Tawhid is referenced throughout the Quran, appearing on nearly every page. Surat Al-Ikhlas establishes the Islamic concept of monotheism, describing the Creator as entirely different from creation: "Say: He is God, the One. God, the Eternal, Absolute. He begets not, nor is He begotten. And there is none like unto Him."(قُلْ هُوَ اللَّهُ أَحَدٌ اللَّهُ الصَّمَدُ لَمْ يَلِدْ وَلَمْ يُولَدْ وَلَمْ يَكُن لَّهُ كُفُوًا أَحَدٌ)
The Islamic philosopher Fakhr al-Din al-Razi notes that this surah is also called "At-Tajreed" (Abstraction), meaning to strip the concept of the Creator of all human and material attributes. This abstraction is fundamental to the belief system and even the artistic abstract taste stemming from Quranic thought, which radically opposed direct representation of the Creator. This is the main reason Islamic civilization used letters, words, and geometric shapes to express the Creator instead of pictorial representations like other civilizations.
The Quran goes a step further than other monotheistic scriptures in its affirmation of a single system governing the universe. It links the existence of this unified cosmic system to the idea of proving the existence of one Creator for the universe using mathematical logic.
The Quran's Surah Al-Anbiya (The Prophets) presents what Muslim exegetes have termed the "Argument of Mutual Hindrance" or "Proof of Mutual Exclusion" (دليل التمانع). This argument is used to demonstrate the existence of a single, unique creator of the universe. The verse states: "If there were, in the heavens and the earth, other gods besides God, there would have been confusion in both!"
Surah Al-Anbiya, verse 22: "لَوْ كَانَ فِيهِمَا آلِهَةٌ إِلَّا اللَّهُ لَفَسَدَتَا".
The concept that the material existence originates from a single principle appears in several other places in the Quran. For instance, Surah Al-Mu'minun (The Believers), verse 91, declares: "God has not taken any son, nor has there ever been with Him any deity. [If there had been], then each deity would have taken what it created, and some of them would have sought to overcome others."
Surah Al-Mu'minun, verse 91: "مَا اتَّخَذَ اللَّهُ مِنْ وَلَدٍ وَمَا كَانَ مَعَهُ مِنْ إِلَهٍ إِذًا لَذَهَبَ كُلُّ إِلَهٍ بِمَا خَلَقَ وَلَعَلَا بَعْضُهُمْ عَلَى بَعْضٍ"
This eloquent argument posits that if multiple gods existed, each would claim sovereignty over its creation, leading to cosmic chaos and conflict. The harmony and order observed in the universe thus serve as evidence for the existence of a single, supreme deity. This Quranic interpretation based on mathematical logic aligns with the ideas of researchers in the philosophy of mathematics like Max Erik Tegmark, whose research concluded that the foundational idea of mathematics is the concept of a "Mathematical Universe Hypothesis". Tegmark describes that the physical laws and constants we observe are consequences of the inherent mathematical structure of our universe.
Digital Art, Quran and Bitcoin
The consistency in Quranic thought and its logic in interpreting divine phenomena and creative manifestations made mathematics find an ideal incubator in Islamic civilization. This radically different understanding of the universe and creation also established an artistic taste fundamentally different from most civilizations parallel and prior to Islamic civilization. Interestingly, when we probe artistic tastes subsequent to Islamic civilization, we find that this type of abstract mathematical geometric art found no other continuation except contemporary computer-related art.
An important research that pointed to this connection is Laura U. Marks’ “Enfoldment and Infinity: An Islamic Genealogy of New Media Art”. There the researcher draws profound connections between Islamic philosophy and computational principles, tracing shared frameworks like “directional unfolding” and “unity generating infinity".
Marks argues that Islamic theology, particularly the concept of Tawhid, underpins a worldview where unity manifests as infinite multiplicity through structured processes. In Islamic art, directional unfolding reflects a spiritual orientation: geometric patterns expand systematically from central points, calligraphy flows with purpose, and prayer spaces align toward Mecca—all oriented toward divine infinity. Similarly, new media art employs algorithms and code to generate dynamic, interactive experiences, where computational rules guide outcomes with intention rather than randomness.
The concept of “unity generating infinity” mirrors Bitcoin’s deterministic protocols (e.g., SHA-256 hashing), where a unified set of rules produces an ever-expanding ledger of transactions. Like Islamic geometric algorithms, Bitcoin’s code acts as a minimal, unifying framework that generates infinite complexity. The blockchain has also a directional unfolding element—each block cryptographically linked to its predecessor, ever growing towards infinity. This parallels Islamic art’s purposeful orientation toward divine truth. Both systems demonstrate how rigid unity (algorithmic or theological) can yield boundless diversity, whether in endlessly tessellating patterns or a trustless, infinitely extensible ledger.
The Simplicity of Bitcoin and the Quran
The fundamental principle of the Quran is remarkably straightforward: there exists a single Creator, distinct from all creation in every attribute. This simple axiom served as the foundation for one of humanity's most advanced civilizations.
The simplicity, clarity, and universality of Islamic doctrine bear a striking resemblance to the features of Bitcoin on multiple levels. Just as Islamic doctrine provides a solid and non-discriminatory basis for organizing complex human relationships across diverse societies worldwide, Bitcoin's simple rules apply universally to all participants. The foundational simplicity of Islam has motivated societies to organize themselves in advanced ways, fostering developed economic, commercial, industrial, and agricultural bases. Similarly, Bitcoin's fundamental rules have spurred the self-organization of a community of miners, users, and developers, creating numerous applications and services built on its technology. Both systems are open and accessible to all, promoting transparency and widespread understanding.
In contrast, some ideological and financial systems intentionally cultivate complexity to obscure truths, intellectually intimidate the public, and discourage questioning of systems designed to limit freedoms or grant privileges to select groups. Marxism, for example, uses obscure language and concepts to allow a self-proclaimed intellectual elite to control society. Similarly, monopolistic forces controlling the global financial system depend on seemingly complex concepts, collaborate with research institutions and academia to justify the state and associated banks' right to create money ex nihilo, leading to societal impoverishment through inflation. This culture of obfuscation, funded by the current global financial system, stands in stark contrast to the transparent principles of Quranic monotheism and also the Bitcoin philosophy. The power of simplicity, as exemplified by Islamic doctrine and Bitcoin, lies in its ability to provide a strong foundation for complex systems while remaining accessible to all.
"Proof of Work" and its Centrality in the Quran and in Bitcoin
Bitcoin is a revolutionary approach to monetary systems mainly because of its "Proof of Work" (PoW) algorithm. PoW is a central guarantee for its attributes. It ensures that rewards are earned solely through verifiable computational effort. Miners compete to solve complex mathematical puzzles, and the first to solve the puzzle gets to add a new block to the blockchain. This process requires significant computational power and energy, making the network resistant to attacks and ensuring the integrity of the transaction history.
At its core, Bitcoin operates on a foundation of meritocracy. This attribute reflects a form of monetary monotheism, where the protocol itself serves as the supreme authority, rather than any institution or individual. This concept draws parallels with religious monotheism, particularly as expressed in Islamic teachings. This stands in stark contrast to fiat and most other crypto currency systems where certain entities wield godlike powers over the monetary system and, by extension, over ordinary people.
Central banks manipulate currency supply and value, effectively acting as monetary deities with the ability to influence the financial fate of entire populations. This arbitrary fiat control mirrors religious polytheistic systems where a select few claim divine right to rule and control resources, creating a hierarchy that inherently disadvantages the majority. Bitcoin's principles align with the Quranic principle of denying divinity or special treatment to any creation and establishing equality before God, with actions determining status. The Quranic verse 16:97 emphasizes this meritocratic principle where actions and faith determine outcomes: "Whoever does righteousness, whether male or female, while he is a believer - We will surely cause him to live a good life, and We will surely give them their reward according to the best of what they used to do."
(مَنْ عَمِلَ صَالِحًا مِّن ذَكَرٍ أَوْ أُنثَىٰ وَهُوَ مُؤْمِنٌ فَلَنُحْيِيَنَّهُ حَيَاةً طَيِّبَةً ۖ وَلَنَجْزِيَنَّهُمْ أَجْرَهُم بِأَحْسَنِ مَا كَانُوا يَعْمَلُونَ). The Quranic emphasis on actions as the criterion for rewards is one of the most recurring themes of the Quran as it was mentioned in over 60 different verses.
From Analog To Digital Silk Road
The meritocratic and trade-friendly principles of Islam find a modern parallel in Bitcoin's decentralized and borderless nature, which allows for global financial participation regardless of nationality or social status. Just as Islamic civilization fostered widespread commercial activity and capital growth in the past, Bitcoin today enables a new era of international trade and investment opportunities, potentially contributing to the spread of a global, decentralized financial culture that transcends traditional boundaries.
The spread of Bitcoin in today's global economy mirrors the historical expansion of Islamic commercial culture in several ways. The flourishing of trade and capital growth under Islamic civilization, and the global activity of Muslim traders and capitalists was one of the main reasons that contributed to the spread of Islam as a culture transcending nationalities, social ranks, and practical backgrounds. Meanwhile, other cultures were shackled by monopolistic systems, whether feudal in the West or caste-based in the East. Europe, after the fall of the Romans, was not an encouraging place for entrepreneurship, trade, and industry. In contrast, societies under Islamic rule were developing on all levels. Securing ownership rights and trade opportunities to everyone, regardless of their background, under Islam, was the basis that gave individuals the possibility to accumulate wealth and for the whole society, muslims and non-muslims, to prosper. This was the reason that made Islamic commercial culture seep into Europe through trade contact in Venice and other emerging centers of Europe and the rest of the world.
It is well known that Max Weber's influential work "The Protestant Ethic and the Spirit of Capitalism" (1922) argued that the rise of Protestant Christianity, particularly Calvinism, was a key factor in the rise of Western capitalism. Weber posited that protestant ethics, which encouraged hard work, frugality, and the pursuit of wealth, provided the moral foundation for capitalist economic behavior. However, Gene Heck's study "Charlemagne, Muhammad, and the Arab Roots of European Capitalism" (2006) challenges Weber's thesis. Heck argues that the Protestant ethics Weber credited for fostering capitalism were essentially a "carbon copy" of Islamic ethics that had emerged a thousand years earlier.
Heck's detailed research demonstrates how the entrepreneurial and capitalist spirit characteristic of Islamic culture permeated into Europe. He elaborates on how financial and investment tools, such as profit-sharing contracts (mudaraba مضارلة), spread throughout Europe, starting from the commercial contact points between Arabs and Europeans in Italian trading cities. The lingering presence of key financial terms in European capitalism with Arabic origins, such as "cheque" (derived from the Arabic Saq "ًصك"), serves as evidence of the Islamic-Arab roots of European capitalism.
The influence of Muslim free trade, particularly the concept of bazaars, on European commerce is well-documented in historical records. Bazaars in Islamic cities functioned as dynamic economic and cultural centers, where Muslim traders played a pivotal role in bridging the East and West through extensive trade networks. These networks spanned vast regions, connecting China, India, Europe, and Africa, with Muslim merchants serving as key intermediaries in the exchange of goods, ideas, and technologies. The discovery of significant quantities of Islamic coins in Northern Europe, near the Baltic Sea coasts, and even in the Americas underscores the far-reaching impact of these traders. This evidence highlights how Islamic commerce not only facilitated global trade but also left an enduring legacy on the development of European economic systems.
Similarly, the modern financial revolution, driven by bitcoin, is challenging traditional monopolistic financial systems, much like how Islamic trade practices offered an alternative to feudal and cast-based economic structures of the past.
Interestingly, the name and concept behind the first bitcoin digital marketplace "Silk Road" drew inspiration from these historical trade routes. Founded by Ross Ulbricht in 2011, Silk Road operated as a marketplace that exclusively used bitcoin for transactions. This digital bazaar demonstrated the potential of decentralized currency and peer-to-peer commerce in the digital age.
Islam and the Cyberpunk movement
There is a noticeable similarity between the cultural-technological movement that gave birth to Bitcoin in the West and the cultural-technological role of Islam throughout history. One of the most important similarities is the concern for individual freedom, privacy, and limiting the role of the state in people's lives. The Cypherpunk movement, of which Bitcoin was one of its projects, played an important role in this field. Perhaps the most famous member of the Cypherpunks is Julian Assange, who worked to expose the encroachment of authorities on individuals and their systematic spying on them.
According to Islamic Sharia, spying is a sin that not only individuals should avoid, but this prohibition also applies to those working in the state. The prohibition of spying is clear in Islam, as stated in Surah Al-Hujurat (verse 12): "O you who have believed, avoid much [negative] assumption. Indeed, some assumption is sin. And do not spy or backbite each other. Would one of you like to eat the flesh of his brother when dead? You would detest it. And fear God; indeed, God is Accepting of repentance and Merciful."
(يَا أَيُّهَا الَّذِينَ آمَنُوا اجْتَنِبُوا كَثِيرًا مِّنَ الظَّنِّ إِنَّ بَعْضَ الظَّنِّ إِثْمٌ وَلَا تَجَسَّسُوا وَلَا يَغْتَب بَّعْضُكُم بَعْضًا أَيُحِبُّ أَحَدُكُمْ أَن يَأْكُلَ لَحْم أَخِيهِ مَيْتًا فَكَرِهْتُمُوهُ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ تَوَّابٌ رَّحِيم)
This prohibition influenced the methods of collecting Zakat (Alms) by the state in early Islamic history, leading to its de facto removal from state authority and making its collection and distribution decentralized and directly available to individuals. Caliph Uthman ibn Affan played a key role in this due to his observation of his workers collecting zakat interfering in individuals' privacy and personal wealth in a desire to increase zakat collection. This led Caliph Uthman to prevent them from doing so and limit the state's zakat collection to visible assets such as land, leaving private wealth for individuals to pay zakat directly without state intervention or control.
This correct understanding of Islam and the limited, "non-invasive" role of the state in society is what made Islamic societies develop and become global centers for trade and science. Undoubtedly, over time, the Islamic state expanded and encroached upon Islamic societies themselves, but this did not prevent the spread of the authentic Islamic way of life to other societies.
The Islamic ethos of economic freedom and intellectual openness profoundly influenced European societies, catalyzing not only the foundations of capitalism but also the dawn of the Enlightenment. European intellectuals and scholars, yearning for a renaissance of ideas, discovered in the vibrant Islamic metropolises of the era a compelling paradigm of openness and individual liberty. It is no coincidence that the Italian Enlightenment artist Raphael Sanzio (d. 1520) placed the Andalusian scholar Ibn Rushd in his famous mural "The School of Athens" among the thinkers and scientists who influenced the West, such as Aristotle, Plato, and others. Similarly, before him, Dante Alighieri (d. 1321) in his famous poem "The Divine Comedy" placed Ibn Rushd, Ibn Sina, and Saladin side by side with the luminaries of ancient Greeks and Romans.
However, civilizations do not perpetually maintain their ascendancy. The Islamic world's cultural prominence, once formidable, gradually diminished as state apparatuses increasingly exerted control over intellectual discourse, economic systems, and social structures. This pattern of decline, precipitated by excessive governmental intervention, is not unique to Islamic societies; it has manifested across diverse cultures throughout history and is currently observable in the Western world. One of the dark chapters in the history of the Western world is the period from the 1890s and beyond, known as the “Progressive Era”. Murray Rothbard's book bearing the same title as the era reveals how the state, in cooperation with major bank owners and monopolists, tightened control over society and markets, leading to economic crises and world wars from which the world has not recovered. This era also saw government encroachment on individual freedoms and freedom of opinion, research, and publication. While the Progressive Era is primarily associated with U.S. history, its roots and influences extend to Europe and beyond. The exchange of progressive ideas between Europe and America contributed to shaping policies worldwide.
In response to these infringements, the Cypherpunk movement emerged in the late 1980s as a counter-force to state surveillance and privacy invasion. Cryptography became their primary weapon against government overreach. The movement's founding manifesto, issued by Eric Hughes in 1993, emphasized the right of individuals to use advanced electronic encryption systems for self-protection. It declared, "We the Cypherpunks are dedicated to building anonymous systems. We are defending our privacy with cryptography, with anonymous mail forwarding systems, with digital signatures, and with electronic money"
The Cypherpunk movement successfully challenged government restrictions on computer cryptography scientific publication in the West, which extended long decades until the 1980s. Through various creative strategies, like publishing encryption code as books to circumvent legal barriers, encouraging civil disobedience, and utilizing Internet platforms to disseminate knowledge about computer cryptography, their efforts led to the widespread availability of cryptography to the public, enhancing individual privacy and digital rights globally. It is remarkable that the manifesto emphasized the need to develop encrypted electronic money. This is despite the fact that the Internet was not yet available to the general public at that time, becoming available later in 1993 on a very limited scale. With Bitcoin the Cypherpunk movement managed to breach one of the most important fortresses of the coercive state that was established in the West and extended its arms to all parts of the world, namely the fortress of central banks.
Conclusion
The values of the Cypherpunk movement align closely with principles introduced by Islam to humanity. Historically, both Islam and the Cypherpunk ethos have addressed foundational issues in social, moral, and technological domains, emphasizing freedom, non-coercion, and the empowerment of individuals to trade and invest in sound money. The last significant global transition to hard money occurred during the 7th century when Mediterranean communities came under Islamic governance. Umayyad Caliph Abd al-Malik (685–705) implemented sweeping reforms, replacing Byzantine-Roman copper-diluted fiat coinage with Islamic pure gold and silver coins. This sound money standard promoted economic stability and fairness, gradually phasing out unreliable Roman currency.
The Islamic hard money standard laid the foundation for the development of capitalism and industrialization, enabling significant global human advancement . However, the so-called “Progressive Era” (since 1890s) marked a departure from this path, leading to a series of wars, state encroachments, and threats to human civilization. Bitcoin represents a corrective measure—a return to sound money principles.
Just as Islamic civilization once embraced sound money, contemporary Islamic culture has a responsibility to adopt contemporary sound money technologies. Bitcoin stands as the most legitimate and digitally appropriate choice. By embracing Bitcoin, Islamic societies can liberate themselves from oppressive centralized systems while contributing to the advancement of this technology for the benefit of humanity.