In an interview with CNBC last week, the Saudi business mogul criticized the cryptocurrency's lack of regulation and warned it was "Enron in the making" - a reference to the 2001 financial scandal in which investors lost billions of dollars.
"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. I just don't believe in this Bitcoin thing," Prince Alwaleed told the CNBC reporter.
"I think it's just going to implode one day. I think this is Enron in the making," he added.
American gas firm Enron went bankrupt in 2001 after executives hid billions of dollars of debts from shareholders of the company.
After a series of bad deals and failed projects, the energy corporation eventually went bust, taking at least $40 billion of investor cash with it.
WATCH: Saudi Prince Alwaleed's thoughts on Bitcoin
Prince Alwaleed added that he was in agreement with JPMorgan Chase CEO Jamie Dimon, who branded Bitcoin a "fraud" which would "eventually be closed".
The 62-year-old Saudi national, and member of the prominent Al Saud royal family, heads Kingdom Holding, an enormous multinational conglomerate with investments in Twitter, Apple, and banking giant Citigroup.
According to exchange websites, Bitcoin trading is available in Saudi Arabia, however, the Saudi Arabian Monetary Authority warned in a July tweet about dealing with Bitcoin because the digital currency - which is not supervised by the government - might have negative consequences on the investment of individuals.
Currently, there are around 17 million Bitcoins in circulation with an estimated total value of close to $100 billion (calculated at today's price of $5,773.86 per coin).
Ethereum, the second biggest cryptocurrency, is worth around $30 billion.
On the same day as the CNBC interview, the Saudi billionaire also told Reuters that the valuation of electric car maker Tesla Inc was "too exuberant" for him to invest in the company.