Last month, billionaire investor and Saudi Prince Alwaleed bin Talal has stated during an interview with CNBC that Bitcoin is “Enron in the making”.
When asked to explain his statement the Saudi billionaire mentioned “It just doesn’t make sense. This thing is not regulated, it’s not under control, it’s not under the supervision of any central bank”. Alwaleed also stated “I just don’t believe in this bitcoin thing. I think it’s just going to implode one day. I think this is Enron in the making.”
The Idea of Bitcoin
However, this is exactly what Bitcoin is all about. It offers the promise of lower transactions fees compared to traditional online payment mechanisms. In addition, the digital currency operates by a decentralized authority, unlike government-issued currencies. Therefore, Bitcoins are not issued or backed by any central banks or governments, which, the Saudi billionaire fails to understand the idea of blockchain technology.
Despite his statements, the digital currency is currently trading at all-time high above $7,700 on Sunday.
Saudi Prince Alwaleed Arreseted
Two weeks after Alwaleed’s statement, the Billionaire investor and bitcoin critic was arrested for money laundering, bribery and extortion.
The Saudi government explained that the arrest was due to “exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money.”
Alwaleed – is a businessmen and billionaire investor with a net worth of $16 billion (as of 9th November 2017). The billionaire is a big stakeholder in Citigroup, 21st Century Fox and twitter. He also owns a majority stake Kingdom Holding Company, a Forbes Global 2000 company.
Considering his criticism of Bitcoin, it was a little ironic for him to bash the digital currency as the prince was arrested for money laundering and other financial crimes.