CoinJar.com Cons: A Deep Dive into the Ethical Quagmire

When evaluating CoinJar.com, particularly from an ethical standpoint, the “cons” significantly outweigh any perceived advantages.

Read more about coinjar.com:
CoinJar.com Review & First Look

The very essence of a cryptocurrency exchange like CoinJar is built upon financial practices that are deeply problematic.

While the website touts features like ease of use and security, these aspects only make the engagement with ethically dubious financial instruments more accessible.

The core issues revolve around the speculative nature of cryptocurrencies, the potential for engaging in Riba (interest) or Gharar (excessive uncertainty), and the lack of a tangible, productive economic basis for many of these digital assets.

Speculative Nature of Cryptocurrencies and the Gambling Analogy

The primary function of CoinJar.com is to facilitate the buying and selling of over 60 cryptocurrencies.

This activity, by its very design, is inherently speculative.

The value of cryptocurrencies is often driven by market sentiment, hype, and supply-demand dynamics rather than underlying productive assets or services.

This highly volatile environment can lead to rapid gains or losses, resembling the unpredictable outcomes of gambling.

For instance, a 2021 study by the University of Chicago Booth School of Business indicated that roughly 14% of crypto investors consider their investments to be gambling. Thinkolives.com Review

The ability to “Grow your portfolio” through such instruments means engaging in a zero-sum game where one party’s profit often comes directly from another’s loss, without any real economic value being created.

This directly contradicts the principles of ethical wealth accumulation, which emphasize productive enterprise and shared prosperity.

The Problem of Gharar (Excessive Uncertainty) in Crypto Transactions

A fundamental principle in ethical finance is the avoidance of Gharar, which refers to excessive uncertainty or risk in transactions.

Cryptocurrency trading, as facilitated by platforms like CoinJar, is rife with Gharar.

The extreme price volatility, the opaque nature of some digital assets, and the lack of clear intrinsic value contribute to a high degree of uncertainty regarding the actual value and future performance of these investments. CoinJar.com Review & First Look

When you purchase a cryptocurrency, you are often buying into a promise or a concept, rather than a tangible asset with a clear, predictable return.

This uncertainty is precisely what is sought to be avoided in ethical financial dealings, where clarity and transparency are paramount.

For example, Bitcoin’s price volatility averaged 70% in 2021, according to Bloomberg data, showcasing significant price swings that make it highly uncertain.

Potential for Riba (Interest) through Related Activities

While CoinJar.com itself is an exchange, the broader cryptocurrency ecosystem often involves activities that directly or indirectly facilitate Riba.

Features like “lending” and “staking” offered by other platforms, which promise fixed or variable returns on crypto holdings, often function akin to interest-based loans. thinkolives.com FAQ

While CoinJar’s website doesn’t explicitly promote these on its homepage, engaging with the crypto market opens the door to such ethically impermissible practices.

Furthermore, the use of credit cards for “instant card payments” (which CoinJar supports with a 2% fee) often involves interest-bearing debt, pushing users into a financial trap that is strictly forbidden.

According to the Federal Reserve, the average credit card interest rate in the US hovered around 20.75% in late 2023, making credit card purchases for speculative assets a particularly risky and unethical proposition.

Lack of Tangible Backing and Productive Economic Activity

Unlike traditional investments in businesses that produce goods and services, real estate, or other tangible assets, many cryptocurrencies lack underlying productive economic activity.

Their value is largely speculative and based on market perception rather than tangible output or intrinsic utility. Thinkolives.com vs. Competitors

This contrasts sharply with ethical financial principles, which encourage investment in real economies that contribute to societal well-being and provide genuine value.

For instance, if you invest in a company that manufactures cars, you are supporting a business that produces a tangible product and provides employment.

Investing in a volatile cryptocurrency, however, often means investing in nothing more than a digital concept, with its value purely dependent on market whims.

Ethical Concerns with CoinJar’s Mastercard and Automated Trading

The “CoinJar Card” and its integration with Mastercard, Apple Pay, and Google Pay, despite its convenience, normalizes spending highly volatile assets as if they were stable currency.

This encourages an unstable financial lifestyle where one’s purchasing power can fluctuate wildly day-to-day. Thinkolives.com Pricing

Furthermore, features like “Dollar Cost Averaging (DCA)” and “Recurring Buy” automate investment into these ethically questionable assets, potentially leading users to commit more capital to a speculative market without active, informed decision-making.

These automated systems, while seemingly convenient, can facilitate continuous engagement with activities that are not in line with prudent and ethical financial management.

According to a 2022 survey by Statista, 57% of cryptocurrency owners believe it is a good long-term investment, yet its extreme volatility contradicts this perceived stability.

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