Saudi leading investor joined the critics of Bitcoin and crypto-currencies

October 24, 2017 12:51 pmComments Off on Saudi leading investor joined the critics of Bitcoin and crypto-currenciesViews: 57

Al-Waleed bin TalalSaudi prince Al-Waleed bin Talal joined the critics of Bitcoin and crypto-currencies, comparing it with the Enron affair.

“I just do not believe in this thing Bitcoin. I think it’ll just blow out one day. I think it’s Enron affair in action”, said Al-Waleed bin Talal. “It just does not make sense, it’s not regulated, it’s out of control, it’s not under the supervision of any central bank”, added he.

The billionaire investor considered large-scale accounting fraud at Enron, the US energy and utilities company, which led to bankruptcy at the end of 2001. The biggest bankruptcy in US history at that time (the seventh company in the ranking Fortune 500) has become a major scandal involving monster accounting frauds, strange management methods, greed, bad investment decisions, thousands of ruined employees, political lobbying and even death.

The Prince, who has recognized investment abilities for his early investments in technology companies such as Twitter and AOL, joins JPMorgan Chase’s CEO, James Dimon, who is one of the most vocal critics of crypto-currencies. Dimon described the Bitcoin as a deception, and said he would fire any of his employees who traded with cripples because of his stupidity.

Al-Waleed bin Talal manages Kingdom Holding, a huge conglomerate which investments include Citigroup, Apple and Twitter. The company is based in Riyadh, Saudi Arabia.

Bitcoin trade is available in Saudi Arabia. But the monetary authority of the kingdom warned on Twitter in July that the digital currency, which is not controlled by the authorities, could have a negative impact on the investment of individuals. The monetary authority has not responded for a comment on the lawfulness of the Bitcoin.

Serious rises in the cost of crypto-currencies are fueled by the growing interest of some institutional investors and Japanese depositors. Trade in Japanese yen generates around 62% of total Bitcoin trade last days, while trade in US dollars is about 21%,

Most of the big investors remain skeptical. BlackRock CEO Larry Fink also identified the digital currency as a “money laundering index” because of its ability to facilitate illegal online trading.

However, JPMorgan and other financial institutions invest in technology that allows the transfer of Bitcoin almost instantly without the intermediation of a third party.

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