Hardblock.com.au Alternatives

Given the significant ethical concerns surrounding Bitcoin from an Islamic perspective, it’s crucial to explore alternative avenues for wealth creation, preservation, and financial security that align with Islamic principles. These alternatives focus on tangible assets, productive investments, and shunning speculative ventures. The aim is to build wealth through legitimate, value-adding means that contribute to the real economy, rather than relying on the volatile fluctuations of digital commodities.

Read more about hardblock.com.au:
Hardblock.com.au Review & First Look
Hardblock.com.au: An Assessment of its Core Offering
Why Hardblock.com.au (and Bitcoin) is Problematic from an Islamic Perspective
Hardblock.com.au Pros & Cons (Focus on Cons from an Islamic Viewpoint)

Investing in Gold Bullion

Gold has historically been a stable and permissible store of value in Islam. As a tangible asset, it provides a hedge against inflation and economic uncertainty.

• Physical Gold Ownership: Buying physical gold coins or bars from reputable dealers. This offers direct ownership and removes counterparty risk.
  • Pros: Tangible, historical store of value, universally accepted, permissible in Islam.
  • Cons: Storage costs and security concerns, not highly liquid for everyday transactions.
  • Where to Buy: Perth Mint (Australia’s official bullion mint), ABC Bullion (Reputable Australian dealer), amazon.com (for smaller, verified items).
• Sharia-Compliant Gold ETFs/Funds: Investing in funds that hold physical gold and comply with Sharia screening for their operations.
  • Pros: Liquidity, no personal storage concerns, diversification.
  • Cons: Management fees, reliance on fund manager, need to verify Sharia compliance of the specific fund.
  • Where to Invest: Seek out Sharia-compliant wealth management platforms that offer such products.

Investing in Silver Bullion

Similar to gold, silver is a permissible tangible asset, often more accessible for smaller investors due to its lower price point.

• Physical Silver Ownership: Purchasing physical silver coins or bars.
  • Pros: Accessible entry point, tangible asset, industrial demand, permissible in Islam.
  • Cons: Volatility can be higher than gold, storage issues.
  • Where to Buy: Perth Mint, ABC Bullion, amazon.com.
• Sharia-Compliant Silver Funds: Funds that invest in physical silver under Sharia-compliant frameworks.
  • Pros: Liquidity, professional management.
  • Cons: Management fees, need careful Sharia-compliance checks.
  • Where to Invest: Through ethical investment advisors or platforms.

Ethical (Sharia-Compliant) Investment Funds/ETFs

These funds invest in a diversified portfolio of companies that meet strict ethical and Islamic screening criteria, avoiding industries involved in alcohol, gambling, conventional finance (riba), entertainment, and other non-permissible activities. Hardblock.com.au Pros & Cons (Focus on Cons from an Islamic Viewpoint)

• Key Features: Diversified portfolio, professional management, adherence to ethical principles.
  • Pros: Diversification, alignment with Islamic values, potential for long-term growth and income.
  • Cons: Management fees, market risk, limited availability of truly robust Sharia-compliant options in all markets.
  • Where to Invest: Sahibaplans (Australian-based Islamic financial planning), Wahed Invest (Global Sharia-compliant digital investment platform), ethical superannuation funds in Australia.

Real Estate Investment

Investing in physical property or Sharia-compliant real estate investment trusts (REITs) can provide stable income and capital appreciation from tangible assets.

• Direct Property Ownership: Purchasing residential or commercial properties for rental income or capital growth.
  • Pros: Tangible asset, potential for stable income, long-term wealth preservation.
  • Cons: High capital outlay, illiquid, management required, market fluctuations.
  • Where to Invest: Local real estate agents, property investment firms.
• Sharia-Compliant REITs: Investing in trusts that own and operate income-generating real estate, ensuring the underlying properties and financing are permissible.
  • Pros: Access to real estate market with lower capital, diversification, potential dividends, more liquid than direct property.
  • Cons: Need rigorous Sharia-compliance checks, market risk, management fees.
  • Where to Invest: Check with ethical brokers or financial advisors for specific Sharia-compliant REITs or funds that include them.

Ethical Microfinance and Impact Investing

These platforms allow individuals to fund small businesses or entrepreneurs, particularly in developing economies, often through interest-free models like qard hassan (good loan) or profit-sharing.

• Key Features: Focus on social impact, empowering communities, often interest-free or profit-sharing.
  • Pros: Direct social impact, aligns with charity and helping others, promotes real economic growth, avoids riba.
  • Cons: Higher risk of default, not primarily a profit-making investment, administrative overhead.
  • Where to Invest: LaunchGood (Crowdfunding for Muslim-led projects and initiatives), Kiva (Microfinance loans to entrepreneurs worldwide).

Direct Investment in Permissible Businesses

This involves providing equity to small and medium-sized businesses (SMEs) that operate in ethical sectors, sharing in their profits and losses. This aligns with Mudarabah (profit-sharing) or Musharakah (joint venture) principles.

• Key Features: Equity investment, shared risk and reward, supports entrepreneurship.
  • Pros: Potential for high returns, direct involvement in real economic activity, aligns with Islamic business principles.
  • Cons: High risk (especially for startups), illiquid, requires significant due diligence.
  • Where to Invest: Ethical crowdfunding platforms (e.g., Equity-Matching Australia – ensure businesses meet ethical criteria), angel investor networks focused on permissible sectors.

Takaful (Islamic Insurance)

For risk management and protection, Takaful offers a Sharia-compliant alternative to conventional insurance, based on mutual assistance and cooperation.

• Key Features: Mutual cooperation, risk-sharing, no riba or gharar.
  • Pros: Adheres to Islamic principles, provides necessary financial protection.
  • Cons: Limited providers in some regions, may have different coverage options than conventional insurance.
  • Where to Invest: Seek out Takaful providers in Australia or globally (e.g., various local Islamic finance institutions).

Why Hardblock.com.au (and Bitcoin) is Problematic from an Islamic Perspective