The middle political uncertainty has risen very high with the arrest of Saudi Arabia’s Prince, Prince Alwaleed bin Talal. Prince Alwaleed bin Talal is the riches Arab in the world. There have been many discussions whether the arrest could affect Bitcoin trading, especially in the Middle East.
Saudi Arabia is cracking down all individuals involved in corruption. The Arabian King, King Salman has ordered the arrest and prosecution of all Princes and senior government officials’ involved in corruption. The arrest the richest prince in Saudi Arabia get arrested. The Saudi Arabia’s Prince, Prince Alwaadeed was a big critic of Bitcoins. He always had negative comments and had predicted the collapse of Bitcoins.
The King has explained the arrest as due to corruption, many people believe Prince Alwadeed was arrested to pave way for the king’s son Prince Mohamed bin Salman to become the next King.
The Sieged Qatar
Since June this year the neighbors of Qatar Saudi Arabia, Bahrain, Egypt, and UAE have put Qatar under pressure for its association with Iran who is enemies with Saudi Arabia. Harboring of Islamic militants has also been identified as a reason why Qatar is having a problem with its neighbors.
Qatar is a small country that is very rich in natural gas. In fact, Qatar has the highest per capita GDP according to the World Bank. The huge per capita GDP is due to its purchasing power parity. Qatar will be the host of the FIFA world cup in 2022.
According to reports, the main reason why Qatar’s neighbors are imposing blockage is the country’s support for Aljazeera. Al Jazeera is a news organization which has in the past aired negative news about the Middle East.
The Collapse of Bahrain
Bahrain is one of the poorest countries in the Middle East. In fact, its GDP is just about 5% that of Saudi Arabia. The country relies on the sale of Oil. The recent drop in oil prices has led the country to economic struggle.
The Central bank of Bahrain has estimated its currency as at 0.376 Bahrain Dinar to be equivalent to 1 USD. This has however strained due to the decreasing foreign currency reserves. The struggling of Bahrain would greatly affect Middle East where most currencies are pegged to the US dollar.
Bitcoin goes up when governments mess up
When governments mess up in such a ways that currencies start to struggle people start looking for alternatives. This is places where the people can store their wealth. In the ancient world, people used to use Gold. Currently, people rush to Bitcoins as a store of their wealth.
The Middle East is a particularly very important region because of its wealth. The citizens of Middle East countries are generally rich because of oil and gas. If the rich in these areas suspect uncertainty in their currencies and invest in Bitcoins the Bitcoin prices would rise to higher heights. Also, the elimination of influential people who criticize Bitcoins like the Saudi Arabia’s Prince is likely to work positively towards the rising of Bitcoin prices.