Political uncertainty factors in the Middle East, bitcoin may act as a safe haven
Saudi Arabia launched a massive crackdown on the surface of anti-corruption. Salman on the king ordered the arrest of senior generals, and ousted many senior officials at ministerial level. Candidates include the world’s richest Arab prince AlwaleedbinTalal.
Alwaleed recently because of the negative views bitcoin and has carried on the report, he said bitcoin will collapse. Although the king Salman public reason is his campaign, but many critics believe that the king may be cleaning his son Prince Mohamed Ben Salman took over the king’s route.
The siege of Qatar
Qatar’s neighbors – Saudi Arabia, Egypt, Bahrain and the United Arab Emirates began to impose a blockade on the country from the beginning of June 2017, accusing it of harboring Islamic militants, and maintain the relationship with the Iran Saudi Arabia determined enemy.
Qatar is a small country in the Middle East, with a large number of natural gas reserves. According to the world bank, according to purchasing power parity, the highest GDP per capita ($127.5K in 2016). It will also host the 2022 World Cup FIFA.
Many people believe that the real reason of the blockade of neighbouring Qatar Qatar support al Jazeera, which is contrary to a propaganda point of view and position of Middle East News organization. In view of the Middle East Government has absolute power, the region’s independent news channel caused a lot of ridicule.
Bahrain is about to collapse
Bahrain is rich in oil resources in the Middle East is one of the smallest economies, its GDP is 1/5 in Saudi arabia. Its economy is dependent on oil, the recent oil price slump led to economic tensions.
The Central Bank of Bahrain will be its currency pegged to the dollar (0.376 Bahrain Dinar $=1), but with reduced reserves, this situation has seriously affected. According to Bloomberg, Bahrain has been to Saudi Arabia for support, in order to avoid financial crisis and devaluation. Bahrain devaluation will have a contagion effect in the Middle East, most currencies are pegged to the dollar.
When the government is wrong, bitcoin will rise
Whether in politics or in the field of finance, government misconduct will lead to people trying to find safe havens for their wealth. Traditionally this is gold, but bitcoin is rapidly developed as an alternative haven, has the property of dispersion and no boundary.
Has an important strategic significance in the Middle East, its rich oil and gas reserves because of its citizens, and a lot of wealth. If the rich Middle East chief think it is a small part of the funds used in the bitcoin is justified, considering the area of uncertainty, bitcoin prices will climb to new heights.