Bitcoin will blow up
Saudi billionaire investor Prince Alwaleed bin Talal said Monday on CNBC that bitcoin will “implode” one day.
“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 said in an interview on CNBC’s “Squawk Box.”
“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,” Alwaleed said.
The billionaire investor was referring to the massive accounting fraud that took Enron, a U.S. energy-trading and utilities giant, into bankruptcy in late 2001.
JPMorgan Chase CEO Jamie Dimon, who last month called bitcoin a “fraud” that will eventually blow up.
Jordan Belfort, the infamous “Wolf of Wall Street” penny stock broker, told The Financial Times in an interview published Sunday that initial coin offerings are the “biggest scam ever.”
“Anybody getting more than five percent of their business from crypto, it’s starting to become significant, and you could see their stock prices very quickly collapse,” Joe Kinahan, chief market strategist at broker Ameritrade told the publication.
Apparently, at risk from fallout are companies profiting from the cryptocurrency ecosystem in some way, such as Nvidia, which has seen huge demand for its products thanks to Bitcoin mining.
“Any product that blows up, there’s always collateral damage,” Kinahan added.
The idea that Bitcoin is in a 1990s Internet-style speculative bubble remains all-pervasive among traditional finance circles, a convenient explanation for the surge of users and investment flowing into both the Bitcoin and Blockchain arena this year.
The ICO phenomenon has added to concerns that the entire cryptocurrency industry could implode at any given moment, due to the large number of assets trading freely without any proven use case or value.
When will the bitcoin bubble burst? That’s a multi-billion dollar question at the moment.