The Phenomena of The Cryptocurrency Fall in The Sharia Economic View

Digital money was first developed in the 1960s when Western Union introduced electronic funds transfers (EFT). In Indonesia, digital money only became popular around 2007. Electronic money regulations are contained in Bank Indonesia Regulation Number 11/12/PBI/2009. Cryptocurrencies are made from a combination of blockchain technology and cryptography. Blockchain is a technology for recording interconnected transactions using unique and immutable codes. On the other hand, Cryptography is a branch of computer science that studies how to hide information. This research aims to obtain answers regarding cryptocurrencies as currency/method of exchange/assets/commodities in Indonesia. The theory applied is the theory of legal and vanity business transactions in Islam. This research is a literature study and is qualitative in nature. The data analysis technique used is analytical descriptive with a normative juridical Islamic law approach. From this research, the results show that cryptocurrencies are haram, referring to the MUI Fatwa, the decisions of the Laznah Bahtsul Masail East Java Nahdathul Ulama Regional Management (PWNU), the Tarjih Council and the Tajdin Central Executive of Muhammadiyah, the opinion of Islamic economics academics. The factors that make cryptocurrencies illegal because they are considered to contain speculation, maysir and are vulnerable to being used for illegal activities. The weaknesses of cryptocurrency are marked by the fall of crypto throughout 2022 and are predicted to continue in 2023. Crypto is illegal lighairihi or haram due to external factors, so it should be avoided.


Introduction
One of the most important discoveries in the history of human life is the discovery of tools that can be used as exchanges to transfer ownership.The presence of a medium of exchange has facilitated human life in conducting transactions from one party to another.The emergence of this medium of exchange is a natural response from human civilization to meet their needs.Prior to the discovery of the medium of exchange, in transferring ownership, the ancient community carried out direct exchange (barter system).For example, a sack of wheat is exchanged for a basket of fish.Such a way of exchanging has indeed facilitated human affairs in fulfilling their needs and desires.However, this method has many weaknesses and is very inefficient.These weaknesses arise because, of course, the value of an item cannot be measured only in terms of quantity or weight.The aspect of difficulty in the process of getting it is also one of the factors that cause the item to be valuable or not.In addition, there are also aspects that are needed or not needed for these items.Humans naturally understand that the more goods are needed and become scarce, the more valuable the value of these goods.So this also raises another weakness of the barter system.Someone who wants to barter must find someone who has the goods they need, and at the same time, that person also https://doi.org/10.37275/oaijss.v7i2.222

A B S T R A C T
Digital money was first developed in the 1960s when Western Union introduced electronic funds transfers (EFT).In Indonesia, digital money only became popular around 2007.Electronic money regulations are contained in Bank Indonesia Regulation Number 11/12/PBI/2009.Cryptocurrencies are made from a combination of blockchain technology and cryptography.Blockchain is a technology for recording interconnected transactions using unique and immutable codes.On the other hand, Cryptography is a branch of computer science that studies how to hide information.This research aims to obtain answers regarding cryptocurrencies as currency/method of exchange/assets/commodities in Indonesia.The theory applied is the theory of legal and vanity business transactions in Islam.This research is a literature study and is qualitative in nature.The data analysis technique used is analytical descriptive with a normative juridical Islamic law approach.From this research, the results show that cryptocurrencies are haram, referring to the MUI Fatwa, the decisions of the Laznah Bahtsul Masail East Java Nahdathul Ulama Regional Management (PWNU), the Tarjih Council and the Tajdin Central Executive of Muhammadiyah, the opinion of Islamic economics academics.The factors that make cryptocurrencies illegal because they are considered to contain speculation, maysir and are vulnerable to being used for illegal activities.The weaknesses of cryptocurrency are marked by the fall of crypto throughout 2022 and are predicted to continue in 2023.Crypto is illegal lighairihi or haram due to external factors, so it should be avoided.
needs the goods they have.Therefore, the method of exchanging goods for goods is considered unfair and inefficient even though it can answer a few human problems.After humans saw that direct exchange methods had many weaknesses, humans then looked for other, more effective ways of exchanging.Various civilizations around the world see that exchange must be made using something that is more valuable, important, beautiful, hard to find and of course must be mutually agreed upon.These goods will later act as a medium of exchange, as a unit of account, and as a means of storing value (properties).
History records that in various parts of the ancient world, each object was used as a medium of exchange and was considered important in that place.For example, the people of the island of Micronesia used stone money (Rai), the Ilonians, Chinese, Greeks, and Persians used metal coins, the Kingdom of Buton used woven cloth, and in several other areas used stones and shells as a medium of exchange.China, which originally used precious metals as a medium of exchange, found another weakness, namely when the price of gold and silver changed which caused a difference between the nominal value and the intrigue.This is coupled with the depletion of the amount of precious metals in these areas.These difficulties then stimulated thought in China to create money from paper in the Tang Dynasty era.This paper money developed when there was a hoarding of wealth by traders in China, who got notes on the amount of wealth or Hequan.It was this hequan that later developed into banknotes.China then understood that paper money was imitated by other nations, which set their own currencies, such as Dollars, Rupiah, Yen, and so on.The use of money, in fact, continues to grow following the development and lifestyle of humans themselves.Paper money, which is still used today, is not without risks or weaknesses.Some of these Islamic law, of course, cannot be separated from the problem of issuing transaction tools or money, because money is an important aspect that is directly related to the benefit of the ummah.References to the issue of money can be found at the time of Umar ra who argued that the issuance of money was the authority of the authorities (ulil amri).In contrast to this opinion, another opinion says that money is limited to dinars (gold) and dirhams (silver) to be printed as currency.Another problem that is of concern to Islamic law is a matter of transactions and business.In the case of muamalah, the initial law is mubah (permissible

Definition of money
Money is an object that can be exchanged with other objects; can be used to value other objects or as a means of calculating and can be used as a means of storing wealth (Rivai, 2007).(Rivai, 2007).

History of the use of money
The history of the use of money continues to grow along with human efforts to make ends meet.Money, which was originally only a medium of exchange (substitute for barter), has now become a benchmark for a person's status in achieving a level of wealth or position in society.In this regard, as a solution and taking advantage of technological developments, digital money or electronic money, also known as emoney, has begun to be created (Darmawan, 2020).

The emergence of digital money
In line with the increasing use of computers, in

About bitcoins
Bitcoin is a digital currency concept with a decentralized peer-to-peer (P 2 P) principle.The

Methods
The type of research used in this research is a Literature Study and summarizes some of the opinions of experts, scholars, and leaders of community organizations (Ormas).This research was conducted using literature and documents from previous studies.
Qualitative research is carried out according to the type of data and its analysis, which emphasizes In QS. at-Taubah [9]: 34, it is explained that the people of that time who liked to hoard gold and silver without giving it in charity or using it in the way of Allah SWT, then indeed Allah will give a very painful punishment on the last day.
From the sound of this verse above, it can be explained that gold and silver are treasures that can be kept and used as a symbol of a person's wealth.So, gold and silver have functioned as a medium of exchange, a store of value, a unit of account, and a future payment standard (Karim, 2017).

Analysis of legal aspects of cryptocurrency according to the views of scholars and experts
The most famous and most expensive type of cryptocurrency in value per chip is Bitcoin.

Cryptocurrency crash events throughout 2022
The researcher also summarizes the events of the fall of cryptocurrencies throughout 2022.On January

Conclusion
Cryptocurrency is a digital/virtual currency that is only recognized as a currency/asset/commodity among its communities.Scholars agree that cryptocurrency is not permissible if it is used as a currency/medium of exchange because it has too many disadvantages compared to its mashlahah.
Contains gharar and mashir elements.There are concerns that its use is misused for negative things weaknesses include: First, you have to carry large amounts of money if you want to make large transactions.To make a cash transaction of Rp. 500 million, you only need one or two suitcases as a container.This first weakness then spreads to the second weakness, namely the vulnerability of the security of the money from criminal acts.Cash carried or stored in large amounts will trigger theft, robbery, pickpocketing, and so on.This is what later gave birth to the development of financial technology (Fintech) and gave rise to digital money (e-money).Digital money first developed is said to have occurred in the 1960s when Western Union introduced electronic funds transfers (ETF).In Indonesia, digital money only became popular around 2007.Electronic money regulations are contained in Bank Indonesia Regulation Number 11/12/PBI/2009.Not long ago, in 2009, electronic money found a new competitor with the birth of Bitcoin.This money is relatively new because it has its own exchange rate and is independent of any relation to conventional money in the world.This is where a new term emerged in the financial world called cryptocurrency.Cryptocurrencies are made from a combination of blockchain technology and cryptography.Blockchain is a technology for recording interconnected transactions using unique and immutable codes.On the other hand, cryptography is a branch of computer science that studies how to hide information.The high enthusiasm of the public in using crypto money is in line with the strengthening of the crisis of trust with the collapse of several giant world financial institutions.In Indonesia alone, based on CoFTRA data, as of December 2021, 11.2 million people became crypto asset investors.The value of crypto asset trading transactions in Indonesia throughout 2021 reached 859.4 trillion rupiah per day.Even though the public's enthusiasm for crypto money has strengthened, the use of crypto money is not without problems.Especially if this is seen from the perspective of Islamic economics.
1983, a research paper by David Chaum introduced the idea of "Digital Money".David Lee Chaum was a computer scientist and cryptographer in 2000.In 1997, the use of digital money grew after the Coca-Cola company, for the first time, offered transactions from vending machines using mobile payments.After that, in 2000, PayPal appeared as a payment service.In Indonesia itself, digital money only became popular in 2007.Regulations regarding the use of electronic money in Indonesia are contained in Bank Indonesia Regulation Number 11/12/PBI/2009.The existence of the definition of digital money, in fact, does not only extend to e-money or the like.In 2009, the world was shocked by the presence of bitcoin, which has its own exchange rate and is independent of any conventional money in the world.Now, the world knows it by the term Cryptocurrency (Darsono et al, 2021).
decentralized P 2 P concept can run through a blockchain technology network.A decentralized P2P network is the movement of Bitcoins without a central server, not owned and regulated by any central government or financial institution.Bitcoin storage servers are decentralized and distributed.The emergence of Bitcoin signaled a fundamental change in the value of "money" and global financial transactions (Darmawan, 2020).
research and description in analyzing meaning.The approaches used in this research are the Normative Juridical Approach and the Syar'i Normative Approach.The Syar'i Normative Approach is an approach and analysis carried out using Islamic Studies studies with the aim of knowing conclusions on the matter under study based on Islamic Law while the Normative Approach is an approach carried out based on the main legal material by examining theories, concepts, principles -legal principles and laws and regulations related to this research.4.Results and DiscussionThe concept of money in Islamic economics Islam views money only as a medium of exchange not as a commodity or merchandise.Islam also strongly recommends money to be used as a medium of exchange.Therefore, the motive for demand for money aims to meet transaction needs (money demand for transactions), not for speculation.(ZainulArifin, 2002).In the Islamic concept, money demand for speculation is not known.Contrary to the conventional system, Islam makes assets the object of Ziswaf, money should not be used for unproductive things because it can reduce the amount of money circulating in society.At the time of the Prophet, the medium of exchange used was Dinar and Dirham.Dinars are made of gold, and Dirhams are made of Silver.
price of bitcoin chips continued to fall until it reached US$20,000.The decline did not only occur in the value of Bitcoin, the price of Ethereum continued to fall until it touched a price below US$1,000.On June 27 th , 2022 Hedge fund from Singapore Three Arrows Capital (3AC) failed to make payments on a loan of US$ 650 million or equivalent to Rp. 10.1 trillion to Voyager Digital.Three Arrows Capital filed for bankruptcy in July 2022.As a result of this failure, Voyager Digital was also affected and filed for bankruptcy on July 7 th , 2022.On July 14 th , 2022, loan service provider Crypto Celsius also filed for bankruptcy.The day before filing for bankruptcy, crypto Celsius had stopped fund withdrawal transactions on its platform.November 11 th , 2022, following the bankruptcy of FTX, crypto lender BlockFi was also affected.As a result, BlockFi also filed for bankruptcy in court.Quoted from CNBC, The Fed et al. (Federal Deposit Insurance Corp and The Office of the Comptroller of the Currency) warned Financial Institutions in the United States about the risk of scams and fraud in cryptocurrency transactions.Following this, many companies engaged in cryptocurrency filed for bankruptcy and decreased the value of keeping bitcoin, Ethereum and Terra Luna.The effect of risks stemming from the interconnection among users of certain crypto assets.The three authorities above the series of events that occurred in 2022 are a sign of the high volatility and vulnerability of crypto assets.The impact of the global crypto market also affects the trading of crypto assets in Indonesia.Bappebti, or the Ministry of Trade's Commodity Futures Trading Regulatory Agency, noted that the value of crypto asset trading in Indonesia in January-November 2022 fell by 65.4 percent to Rp. 296.66 trillion compared to transactions throughout 2021, namely IDR 859.4 trillion.
One of the Governors of the CentralBank who has an opinion on Crypto is the Governor of the Central Bank of England Andrew Bailey.Andrew said " Crypto assets" have extrinsic value, in the sense that people like to collect and own them, just as they like to collect and own all kinds of things, but that extrinsic value is highly unstable and could be nothing "other than that Director Monetary Authority of