Political vulnerability in the Middle East has achieved the most abnormal amount, and Saudi Arabia has arrested the world’s wealthiest people, Prince Alwaleed Bin Talal. Might it be able to prompt the progress to Bitcoin.
The disaster of Saudi Arabia
Saudi Arabia has propelled a huge scale, professedly against debasement battle today.
Ruler Salman requested the capture of senior rulers and drove numerous senior clergymen into office. The rundown of captured individuals incorporates Prince Alwaleed bin Talala, the richest Arab in the world.
Sovereign Alwaleed made headlines for his negative views on Bitcoin, claiming it would collapse like Enron.
King Salman cited his ongoing anti-corruption campaign as the reason behind the arrests. However, many commentators argue that, beyond this justification, the move may also serve to pave the way for his son, Crown Prince Mohammed bin Salman, to eventually ascend to the throne.
Qatar Siege
Since the beginning of June 2017, Qatar’s neighboring countries—namely Saudi Arabia, Egypt, Bahrain, and the United Arab Emirates—have imposed a blockade on the nation. They claim that Qatar supports Islamist militants and maintains ties with Iran, which is, notably, a long-standing adversary of Saudi Arabia.
Qatar is a small country in the Middle East, with large reserves of natural gas. According to the World Bank, it is the country with the highest GDP per capita based on Purchasing Power Parity ($ 127.500 in 2016). Many believe that the real reason why Qatari’s neighbors impose a blockade is Qatar’s support for Al-Jazeera, a media organization that has issued views contrary to its well-established position in the Middle East. Given the absolute power enjoyed by the Middle East governments, an independent information channel in the region has caused many hackles.
Bahrain at the edge of the fall
Bahrain, one of the smallest economies in the oil-rich Middle East, relies heavily on oil. Its GDP amounts to just five percent of Saudi Arabia’s. The recent decline in oil prices has stretched its economy to the limit.
The Central Bank of Bahrain linked its currency with the US dollar (0.366 Bahn Dinar = US $ 1), but it is subject to declining foreign reserves. According to Bloomberg, Bahrain has turned to Saudi Arabia for support to stop the financial crisis and the upcoming devaluation. A currency devaluation in Bahrain could trigger a ripple effect across the Middle East, where most nations peg their currencies to the US dollar.
Bitcoin grows when governments screw up
Freedom by governments, both in the political and financial circle, makes individuals look for a place of refuge for their wealth. Generally, it is gold, yet Bitcoin is quickly creating as an option place of refuge, with decentralized and no-outskirt nature.
The Middle East is of key significance, both because of the colossal stores of oil and flammable gas and the tremendous abundance of its residents. On the off chance that rich shamans in the Middle East trust that stopping a part of their riches in Bitcoin bodes well, given the vulnerability in the district,the Bitcoin price could scale to a new peak.