In an interview with CNBC, the Saudi Prince Al Waleed bin Talal, a powerful businessman said that the Bitcoin is ‘Enron in the making.’ The company Enron was a huge financial scandal in which investors lost billions of dollars. Enron was an American gas firm which declared itself bankrupt in 2001 after the executives hid billions of dollars of debt from the shareholders of the company.
The bankruptcy not only shook the shareholders but also the analyst because Enron was reported the seventh largest corporation in the United States and had long reported a list of huge earnings. After a series of bad deals and failed projects, the company suddenly declared itself bankrupt, it is reported that the investors lost at least 40 billion dollars in this financial scandal.[irp]
The Bitcoin in a similar fashion is the hot topic these days. As the trend has developed, the stakes have gone up. The prince criticized the crypto currency’s lack of regulation as he said in his interview ‘It just doesn't make sense.
This thing is not regulated, it's not under control, and it’s not under the supervision of any central bank. I just don't believe in this Bitcoin thing.’ The Bitcoins are not monitored by any bank and does not fall under the control of any individual, the prince says that this does not make any sense.
It is reported that in 2009, 5,000 Bitcoins cost $27 but the current value of 1 Bitcoin these days is around $6,000. The prices have elevated shockingly and people have started investing heavily in Bitcoins. Currently, there are 17 million Bitcoins in circulation which makes around 100 billion dollars.
The cryptocurrency has left its competitors a long way behind as Ethereal, the second biggest cryptocurrency, has a worth of around 30 billion dollars. Prince Al Waleed also agreed with JP Morgan Chase CEO Jamie Dimon who said that Bitcoin is a fraud and would eventually collapse.
The Prince himself is the member of the Al Saud Royal family. He is the head of the great multinational company, Kingdom Holding which has shares in Twitter, Apple and banking elite, Citi group. This shows that the prince is no new to business dealings and investments and knows what he is talking about.
But are the Bitcoins to be considered in such a manner? In Saudi law, there is no restriction on Bitcoin trading but the Saudi Arabian monitory authority has warned in a tweet that dealing with cryptocurrency may have negative results because it is not supervised by the government and the government will not be responsible if something goes bad.
مؤسسة النقد تحذر من التعامل بالعملة الإلكترونية pic.twitter.com/CJo2nKMYwx
— SAMA (@SAMA_GOV) July 4, 2017
On another question, the billionaire said that the Tesla Inc. is too much vigorous for him to invest in the company. Investing in Bitcoins has yielded large profits for people but it always makes people question the regulation and monitoring of this cryptocurrency.
It has evolved throughout the years and attracts the investor’s eye but according to the prince who is an experienced businessman, it is not to be trusted. But on the other hand, innovation and exuberance has always been on top and is always leading the business world.