Beyond Bitcoin: staking, altcoins, and halal solutions - mining alternatives in 2025
In our previous article, we explored the declining profitability of Bitcoin mining in 2025. Faced with high energy costs and fierce competition, many investors, especially those in the Muslim community, are seeking more accessible, profitable, and ethically compliant alternatives. This article explores the possibilities beyond Bitcoin mining, focusing on staking, mining other cryptocurrencies (altcoins), and solutions perceived as "halal."
Understanding the Mechanisms: Proof-of-Work vs. Proof-of-Stake
To understand the alternatives, it is essential to differentiate between the two main systems that secure blockchains.
Proof-of-Work (PoW): Traditional Mining
Proof-of-Work (PoW) is the mechanism used by Bitcoin. It relies on "miners" who use massive computing power to solve complex cryptographic puzzles. The first to find the solution validates a block of transactions and receives newly created cryptocurrencies as a reward.
The Problem with PoW: This system is extremely energy-intensive. The Bitcoin network's electricity consumption is often compared to that of entire countries, raising significant ethical and environmental questions. From an Islamic finance perspective, some scholars consider this excessive consumption a form of waste (israf), making PoW mining questionable.
Proof-of-Stake (PoS): The Economical Alternative
Proof-of-Stake (PoS) is a much more energy-efficient alternative. Instead of miners, PoS uses "validators." These validators "lock" (or "stake") a certain amount of their own cryptocurrencies as collateral for the right to validate transactions and create new blocks. In exchange for this service, they receive rewards, usually in the form of new units of the cryptocurrency.
This paradigm shift was popularized by Ethereum's transition to PoS in September 2022, an event known as "The Merge," which reduced the network's energy consumption by over 99.95% [1].
| Feature | Proof-of-Work (Mining) | Proof-of-Stake (Staking) |
|---|---|---|
| Actor | Miner | Validator |
| Mechanism | Solving puzzles | Locking tokens |
| Hardware | GPU, ASIC (expensive) | Standard computer |
| Energy | Very high | Very low |
| Halal Perspective | Questionable (wasteful) | Generally more acceptable |
Staking: A Halal Alternative?
Staking is often seen as a more compliant alternative to mining according to Islamic finance principles. Here's why.
Staking vs. Lending (Interest-Bearing Loans)
It is crucial not to confuse staking with lending. Cryptocurrency lending, where one lends their assets in exchange for a fixed interest, is unanimously considered haram because it involves riba (usury), which is clearly forbidden in Islam.
Staking, on the other hand, is different. The investor does not lend their funds to another person. They lock them to actively participate in securing and operating a blockchain network. The reward is not an interest paid by a borrower, but compensation for the service rendered to the network, in the form of new tokens created by the protocol. This distinction is fundamental.
According to the specialized platform Islamic Finance Guru, staking is often considered permissible because it is more akin to a service rental or participation in a productive enterprise than an interest-bearing loan [2].
Halal Staking Platforms: The Example of EthicalNode
Faced with growing demand, specialized platforms have emerged to offer Shariah-compliant staking solutions. The best known is EthicalNode.
EthicalNode (https://ethicalnode.com) is a platform that works with Islamic scholars to analyze and certify blockchains as "halal" for staking. Their "Halal Crypto Screener" classifies assets into three categories: "Comfortable," "Questionable," and "Non-Comfortable."
Here are some examples of cryptocurrencies deemed "Comfortable" for staking by EthicalNode, with their annual percentage rates (APR) [3]:
| Network | Token | APR (Annual Percentage Rate) | Staking Status |
|---|---|---|---|
| Persistence | XPRT | 20.94% | ✅ Comfortable |
| Cosmos Hub | ATOM | 16.16% | ✅ Comfortable |
| Sentinel | DVPN | 13.49% | ✅ Comfortable |
| Akash Network | AKT | 9.93% | ✅ Comfortable |
| Fetch.ai | FET | 6.15% | ✅ Comfortable |
Industry giants like Binance have also launched dedicated products, such as "Sharia Earn," offering certified halal staking for major cryptocurrencies like Ethereum (ETH) and Solana (SOL) [4].
Mining Other Cryptocurrencies: Alternatives to Bitcoin
For those who still wish to engage in PoW mining, there are alternatives to Bitcoin. After "The Merge," many Ethereum miners turned to other coins.
Ethereum Classic (ETC)
Ethereum Classic (ETC) is the original Ethereum chain that refused to reverse the DAO hack in 2016 and retained the PoW mechanism. It remains one of the most popular options for GPU mining.
- Hardware: GPU with at least 6 GB of VRAM (e.g., RTX 3070, RX 6700 XT).
- Profitability: Moderate, but highly dependent on electricity costs. Calculators like WhatToMine are essential.
Other Minable Altcoins
Other PoW cryptocurrencies can be mined, each with its own specifics:
- Ravencoin (RVN): ASIC-resistant, it favors GPU mining.
- Kaspa (KAS): Uses a unique algorithm (kHeavyHash) and has gained popularity.
- Monero (XMR): Focused on privacy, it is designed to be mined with CPUs.
However, the profitability of these altcoins is often volatile and lower than what Ethereum mining once offered [5].
Conclusion: A Horizon of Ethical Opportunities
The world of passive income generation in crypto has evolved far beyond simple Bitcoin mining. For investors, and particularly for the Muslim community, staking now represents a much more attractive, sustainable, and ethically defensible alternative.
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Staking is the Future: Less energy-intensive, more accessible, and potentially compliant with Islamic finance principles, staking (especially via certified platforms like EthicalNode) is the way to go.
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Distinguish Staking from Lending: It is imperative to understand that staking is not an interest-bearing loan (riba). Avoid lending platforms or "flexible savings" products that are based on loans.
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Altcoin Mining Remains a Niche: Mining coins like Ethereum Classic (ETC) is still possible but is aimed at a technical audience, prepared to manage hardware and accept uncertain profitability.
As always, it is essential to do your own research (DYOR) and, for matters of religious compliance, to consult qualified Islamic scholars. The crypto landscape is constantly evolving, but it now offers clear paths for those looking to invest in accordance with their faith and values.
References
[1] Ethereum Foundation. (2022). The Merge. https://ethereum.org/en/upgrades/merge/
[2] Islamic Finance Guru. (2025). Crypto Staking: The Islamic Perspective. https://www.islamicfinanceguru.com/articles/crypto-staking-the-islamic-perspective-investing-options
[3] EthicalNode. (2025). Halal Crypto Screener & Supported Networks. https://ethicalnode.com/
[4] FinTech Weekly. (2025). Binance Launches Sharia-Compliant Staking Product. https://www.fintechweekly.com/magazine/articles/binance-sharia-earn-halal-crypto-staking-launch
[5] EMCD. (2025). Alternatives to Ethereum Mining: ETC, Staking, and Other Methods. https://emcd.io/articles/mining/alternatives-to-ethereum-mining-etc-staking-and-other-methods-a-complete-guide/