Tuesday, October 24, 2017

Saudi Prince: Bitcoin is 'Enron in the Making'

Billionaire Saudi Prince Alwaleed bin Talal, who owns investment firm Kingdom Holding, expressed skepticism about cryptocurrencies in an interview with CNBC on Monday, warning that bitcoin was like "Enron in the making". Prince Alwaleed, whose company invests in major U.S. companies such as Citigroup and Twitter, said a lack of regulation made such cryptocurrencies risky. "I just don't believe in this bitcoin thing. I think it's going to implode one day. It's Enron in the making," he said, referring to the U.S. energy company that filed for bankruptcy in 2001 after revelations of a widespread accounting fraud. "This thing does not make sense. It's unregulated. It's not under the control of the U.S. Federal Reserve or any other central bank," he added. Bitcoin is a virtual currency that has gained more than 500 percent this year, more than any other tradable asset class.

Comments

More like: 'The Great Train Robbery'

#1 | Posted by SheepleSchism at 2017-10-23 07:49 PM

It sure is. Just like $150 BBL oil and $2000 per oz gold. I have seen ordinary middle class friends buying into the hype because "if you invested $1,000 a year ago you'd have blah blah blah".

#2 | Posted by 726 at 2017-10-24 12:00 PM

#2 ...and the stock market. Whew Nellie, what a bubble.

#3 | Posted by SheepleSchism at 2017-10-24 12:03 PM

Yep.
A local carryout near my office has a Bitcoin machine in it. Yesterday I saw a local thuglife dealer making a purchase/deposit to his account. He will get a big surprise when his Bitcoin goes from $5500 (today's price) to $1280, like it was six months ago. Can you say 'pissed off thug?' Sure, I knew you could...

#4 | Posted by catdog at 2017-10-24 05:31 PM

Rich people tied to greenbacks sure don't like the idea of a viable currency beyond government control.

First Dimon who is up to his eyeballs in Fed money, now this guy with Petrodollars out the wazoo.

#5 | Posted by snoofy at 2017-10-24 05:34 PM

Sure it is; if you know nothing about Enron or Bitcoin.

#6 | Posted by IndianaJones at 2017-10-24 06:13 PM

#5 | POSTED BY SNOOFY

The hedgefund managers that bash blockchain currencies and ETFs crack me up. If they are so vocal about it being a bubble, the two must be a real threat to their active investing style.

#7 | Posted by IndianaJones at 2017-10-24 06:15 PM

Ok look at the track record of bitcoin - just like the stock market. As more people want them the price will go up - limited supply. They are not going to tank for long when this bubble adjusts. Been watching them from the beginning. Sure some will bust. I don't think bitcoin will.

#8 | Posted by GalaxiePete at 2017-10-24 09:20 PM

The basis of bitcoins, is they cannot be counterfeited because of its solid computerized accounting system. A far cry from Enron human engineered accounting fraud.

#9 | Posted by bayviking at 2017-10-24 09:26 PM

" If they are so vocal about it being a bubble, the two must be a real threat to their active investing style."

They don't understand the technology.

#10 | Posted by klifferd at 2017-10-24 10:38 PM

also. f this dictator.

#11 | Posted by klifferd at 2017-10-24 10:39 PM

and the stock market. Whew Nellie, what a bubble.

#3 | POSTED BY SHEEPLESCHISM AT 2017-10-24 12:03 PM | REPLY

Bitcoin is this century's dutch tulips.

#12 | Posted by 726 at 2017-10-25 07:12 AM

"Rich people tied to greenbacks sure don't like the idea of a viable currency beyond government control."

I'm not rich but I still want government to have some controls over our currency. I wouldn't invest 10 cents into bitcoin which is a scheme whereby some very smart folks are going to pull the rug out when the pot is big enough.

#13 | Posted by danni at 2017-10-25 08:05 AM

Are you telling me the guy who holds 140 billion in US treasuries and was bailed out when Citibank failed thinks Bitcoin is the next Enron? Sounds legit.

#14 | Posted by Ben_Berkkake at 2017-10-25 08:39 AM

"Are you telling me the guy who holds 140 billion in US treasuries and was bailed out when Citibank failed thinks Bitcoin is the next Enron? Sounds legit."

I'm telling you that he probably knows more about it than you do. He stands to lose far more if he is wrong. What nation backs up bitcoin? The United States backs up dollars and Treasury Bills. Might not be perfect but it is a hell of a lot more security than you get with bitcoin.

#15 | Posted by danni at 2017-10-25 09:40 AM

bitcoin isn't like enron at all.

enron was a company. bitcoin is more like the digital version of a precious metal. There are a finite number of bitcoins.. unlike normal currency, that the government can print as they want, while completely devaluing the money you have in the bank.

#16 | Posted by klifferd at 2017-10-25 09:43 AM

"I'm telling you that he probably knows more about it than you do."

yea.. he knows things... like how there are 72 virigns. driving a car makes women lose their virginity. that you can whip the gay out of people.

he knows a lot.

#17 | Posted by klifferd at 2017-10-25 09:44 AM

yall should read about Bitcoin from this very smart investor

www.cnbc.com

who has made 2000% returns to his clients using bitcoin. yes two thousand.

I'm sure yall will, however, remain happy, with your 3% return on your mutual funds, barely equalling inflation, at least until the next depression, then you will lose money.

#18 | Posted by klifferd at 2017-10-25 09:48 AM

It may crash but not for the reasons this shill is giving.

#19 | Posted by Sully at 2017-10-25 10:09 AM

There are a finite number of bitcoins..

#16 | POSTED BY KLIFFERD

yall know there are a finite number of brain cells...i'm teasin', yall double down and invest
everything you can in bitcoins. if a little's good then a lot's better

#20 | Posted by ABlock at 2017-10-25 10:14 AM

What nation backs up bitcoin? The United States backs up dollars and Treasury Bills. Might not be perfect but it is a hell of a lot more security than you get with bitcoin.

No nation backs up bitcoin. No nation can control bitcoin. The power of the network is the security of bitcoin. Bitcoin nodes are in space. It is a worldwide medium of exchange.

I don't always need the power of the US Government for security in my wealth. That's already how it works in most of the world right now.

#21 | Posted by Ben_Berkkake at 2017-10-25 10:20 AM

"No nation backs up bitcoin. No nation can control bitcoin. The power of the network is the security of bitcoin. Bitcoin nodes are in space. It is a worldwide medium of exchange."

When bitcoin loses 90% of its value (or 100%) repeat those meaningless words over and over and kiss your savings goodbye.

#22 | Posted by danni at 2017-10-25 10:25 AM

"enron was a company. bitcoin is more like the digital version of a precious metal"

Digital version of a precious metal? That is preposterous. Precious metals are real, bitcoin is virtual. It can be erased just like your hard drive.

#23 | Posted by danni at 2017-10-25 10:27 AM

I had friend tell me to buy bitcoins when they were a few bucks each at most. Didn't listen to him because he's crazy. He made a fortune.

The opportunity to make 2000% isn't there now, IMO. But it's already made well over 20% this year. Could be a bubble. Could be the preferred currency for storing wealth in many countries for decades to come.

#24 | Posted by Sully at 2017-10-25 10:29 AM

I had friend tell me to buy bitcoins when they were a few bucks each at most. Didn't listen to him because he's crazy. He made a fortune.

The opportunity to make 2000% isn't there now, IMO. But it's already made well over 20% this year. Could be a bubble. Could be the preferred currency for storing wealth in many countries for decades to come.

#25 | Posted by Sully at 2017-10-25 10:30 AM

It is the middle ground between light and shadow, between science and superstition, and it lies

between the pit of man's fears and the summit of his knowledge. ... It is an area which we call

the BitCoin Zone.

#26 | Posted by ABlock at 2017-10-25 10:31 AM

"The opportunity to make 2000% isn't there now, IMO. But it's already made well over 20% this year. "

I know people who gamble, some of them have made money too. That's all that type of investment is, there is no logic nor basis for gambling there unless you can afford to lose the money just like gamblers do. I can't afford that, I'll stick to dollars, if I come into any extra funds I might buy some gold. Right now , here in S. Florida, real estate could be good for the next several years. We've got an influx of Puerto Ricans who are going to need homes so prices will rise.

#27 | Posted by danni at 2017-10-25 10:35 AM

It's made over 20% in the last couple of months I meant to say.

I'm surprised at your animosity towards this, danni. Bitcoin is trying to prevent a lot of the problems that corrupt sell outs and banksters create.

I get that if is volatile but it sing as if the dollar is held up by anything more than perception. Nothing inherently valuable about any currency.

#28 | Posted by Sully at 2017-10-25 10:46 AM

When bitcoin loses 90% of its value (or 100%) repeat those meaningless words over and over and kiss your savings goodbye.

Maybe it will. I have faith in the technology and the brilliant minds developing applications to utilize the technology. If it drops 90%, I'll buy more.

Digital version of a precious metal? That is preposterous. Precious metals are real, bitcoin is virtual. It can be erased just like your hard drive.

Danni, how can a bitcoin be erased like your hard drive?

#29 | Posted by Ben_Berkkake at 2017-10-25 10:49 AM

Maybe it will. I have faith in the technology and the brilliant minds developing applications to utilize the technology.

#29 | POSTED BY BEN_BERKKAKE

and i have faith that some brilliant minds will develope an application that with one keystroke,
will take it all away.

#30 | Posted by ABlock at 2017-10-25 11:00 AM

"I get that if is volatile but it sing as if the dollar is held up by anything more than perception. Nothing inherently valuable about any currency."

Our federal government owns enough property to insure our currency's value. Bitcoin, not so much. But hey, if you want to put your money in bitcoin have at itk I just won't be joining you.

"Danni, how can a bitcoin be erased like your hard drive?"

It only exists on a hard drive. It's virtual money, it could be erased at any moment and you'd have what? Who would you go to for recovery of your funds?

#31 | Posted by danni at 2017-10-25 11:02 AM

That's all that type of investment is, there is no logic nor basis for gambling there unless you can afford to lose the money just like gamblers do. I can't afford that, I'll stick to dollars, if I come into any extra funds I might buy some gold.

If you don't think there is logic in wealth transactions without a third party, you should rethink it. Bitcoin is revolutionary for large transactions, transactions in dangerous areas where wealth security is difficult, or in areas that don't have an adequate banking system.

Tell the people of Venezuela or Zimbabwe there's no logic in investing in bitcoin.

#32 | Posted by Ben_Berkkake at 2017-10-25 11:05 AM

It only exists on a hard drive. It's virtual money, it could be erased at any moment and you'd have what? Who would you go to for recovery of your funds?

If you know your keywords to your wallet, the entire worldwide bitcoin network would have to be destroyed, including all bitcoin nodes in space. If an event of that magnitude were to happen, I would have a lot more concerns than wealth retention.

If you know your keywords by memory, you carry your wealth with you where ever you go. The network comes back online, you re-open your wallet on the device of your choice.

#33 | Posted by Ben_Berkkake at 2017-10-25 11:10 AM

Tell the people of Venezuela or Zimbabwe there's no logic in investing in bitcoin.

#32 | POSTED BY BEN_BERKKAKE

my new investment strategy...Look to Zimbabwe

#34 | Posted by ABlock at 2017-10-25 11:14 AM

my new investment strategy...Look to Zimbabwe

Central bank inflationary currency against a deflationary currency like bitcoin means sweet, sweet price discovery. Some central banks are better than others and show more resistance, but the results are always the same.

#35 | Posted by Ben_Berkkake at 2017-10-25 11:21 AM

#35 BEN BERKKAKE

What's the end goal? Where do you see bitcoin ending up? Replacing current currency? Being an additional currency along side the USD, GBP, JPY, and 20 other digital currencies etc? What is the role of bitcoin in the future?

#36 | Posted by gavaster at 2017-10-25 11:36 AM

#35 | POSTED BY BEN_BERKKAKE

i have little money > no power > therefore worthy of no respect...but i can count. and what i
can count on is to be one of those left broke and helpless when this ponzi scheme collapses.
if i had invested.
i sincerely hope that it works out well for you

#37 | Posted by ABlock at 2017-10-25 11:41 AM

What's the end goal? Where do you see bitcoin ending up? Replacing current currency? Being an additional currency along side the USD, GBP, JPY, and 20 other digital currencies etc? What is the role of bitcoin in the future?

I believe that most modern countries will adopt a blockchain based currency using the technology of bitcoin, however that will be inflationary and central bank controlled. I don't think you'll see bitcoin replacing current currency, but you never know if there's an application that will make bitcoin something that everyone needs.

To use digital music as a comparison, I feel as though we're in the "mp3 stage" of the development process, sitting in front of your computer listening to digital music. It still isn't very easy to get your hands on bitcoin without a sense of adventure. We still haven't seen the Napster, ITunes or IPod of bitcoin. Bitcoin is still waiting for the applications and devices that make it universal. If and when that happens, who knows the impact it could have?

#38 | Posted by Ben_Berkkake at 2017-10-25 12:26 PM

The idea that our government secures the value of the dollar by putting up property is preposterous. Under what circumstances can people trade dollars for government assets? Lol

#39 | Posted by Sully at 2017-10-25 12:31 PM

#38 - Ben

So if I create a new digital currency and am more successful marketing to the general population by supplying daily living tech integration that makes the transition from government backed currency to my GSD (Gavaster Super Dollar) seamless, what happens to bitcoin?

Also, once mining is complete and the only way to make money using your mining processors is to charge people a fee for the service...every time money changes hands you have a system of 'owners' who will be taking a percentage of the transaction. At a 1% exchange rate it will take 1 year for those who own the miners to possess all the bitcoins.

The blockchain tech I think is useful. A finite currency that's max value is $21 trillion is not going to replace a world economy who's GDP is 3x the max value of bitcoin and who's estimated net worth is 11x bitcoins max value.

Bitcoin is essentially a commodity to me. Not a currency.

#40 | Posted by gavaster at 2017-10-25 01:18 PM

Digital version of a precious metal? That is preposterous. Precious metals are real, bitcoin is virtual. It can be erased just like your hard drive.

#23 | POSTED BY DANNI

Fundamental misunderstanding.

Precious metals need limited supply and a function. Cryptocurrencies only require limited supply.

You can erase a bitcoin stored on a hardrive, that does not erase the hash of the bitcoin. Hell, if you memorize it, it is still a bitcoin.

#41 | Posted by IndianaJones at 2017-10-26 01:08 PM

The bitcoin market is being manipulated big time.

#42 | Posted by Pirate at 2017-10-26 05:16 PM

"yall double down and invest
everything you can in bitcoins"

who the f invests all their money in one thing.

i have about a grand in bitcoin.

i've enjoyed making 100% profit on that so far. It's not a lot of money.. but i guess you think a few extra bucks is a bad thing.

#43 | Posted by klifferd at 2017-10-27 09:01 AM

"Digital version of a precious metal? That is preposterous. Precious metals are real, bitcoin is virtual. It can be erased just like your hard drive."

uhmm digital version means virtual. you literally said what i said but disagreed.

bitcoin when stored with a company like coinbase is literally the same thing as your bank account... its just a number on a hard drive.
if you download your bitcoin onto "a harddrive" you are taking the risk of it getting deleted just like you take the risk of getting robbed or losing your wallet.

To be clear, its not one harddrive.. there is a lot of reduncy and backup.

#44 | Posted by klifferd at 2017-10-27 09:06 AM

so the only difference is

when your bank loses your money and can't trace the audit trail, you hopefully will be helped, if they believe you.

with coinbase, you probably have no recourse... but there are also a LOT less human errors involved in coinbase then there is in a bank.

#45 | Posted by klifferd at 2017-10-27 09:11 AM

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