The cryptocurrency is experiencing an unrealistic and unexpected surge in its trading volume. So far in the year 2017, the frenzied speculations and mainstream curiosity of investors have been welcomed by a more than 500% increase in bitcoin value.
With this great advancement of cryptocurrency, almost everyone around the globe is closely following the news related to different digital currencies. Many are now a part of this huge digital currency industry and many organizations around the world are starting new bitcoin projects to step into this sector. However, there are still some countries such as the UK and others which still doubt the legitimacy of cryptocurrency, especially in terms of its usage and stability.
To mention the most recent, the Saudi noted investor and royal Prince Alwaleed bin Talal seem to have no admiration towards the digital currency and calls the cryptocurrency as ‘Enron in the making’.
The Land of Royals Voices Reservations about Digital Currency
In the land of countless royals – both billionaires and princes – prince Alwaleed bin Talal is not only the richest of all but also the grandson of King Abdulaziz Alsaud.
While the prince successfully made it to the investment world, including the big names such as AOL and Twitter, he seems to miss the bitcoin bus. In one of his recent statement, the prince called the cryptocurrency as the next Enron in the making. He confirmed that bitcoin is a failed phenomenon which is likely to implode one day.
Even though the prince holds a good reputation as an early-spotter of successful and new technology trends, the prince says that what makes the bitcoin failure certain is the lack of centralized governing authority.
While this makes the prince in alignment with Jamie Dimon, the prince does not think this digital currency makes any sense. The currency is not being supervised by the United States Federal Reserve or say any other central bank and that what makes its sustainability highly doubtful.
Are you still wondering why prince compared bitcoin with Enron?
Well, to be honest, there is no similarity between the two stories. However, Enron is a famous textbook fraudulent case – a company which used accounting loopholes to mislead investors. The scenario featured auditors conniving with higher management and no one was there to catch the fraud for long.
All of these frauds resulted in the bankruptcy of Enron along with Arthur Anderson dissolution, which was noticeably among the top five audit firms in the world.
As we said earlier, the two stories are no match – a decentralized currency and a fraudulent company. However, the prince apparently likes to believe that the prices of bitcoin will collapse and that too, the same way Enron’s shares were collapsed from $90 to $1.
The Benefits of Decentralized Currency
Maybe prince Alwaleed and Jamie Dimon do not realize the benefits of bitcoin, being a decentralized currency. The currency is outside the control of any sort of central governing authority and this is exactly what its strength is. Many countries including UK and Russia feel threatened by the bitcoin as it let people be in control of their money.
No matter what the reasons are but it is no surprise that Middle Eastern princes and the Wall Street royalty are extremely threatened enough to shut it down in the longer run.