bitcoin

The Bitcoin FUD need not be feared, says Sino Global Capital

Cryptocurrency traders seemed beset on all sides by fear, uncertainty and doubt in the midst of the crippling price drops earlier this week. Dermot McGrath, head of research at Sino Global Capital, a blockchain investment firm, said, however that the firm prefers to take a long-term view.

Shortly after a dip in Thanksgiving Bitcoin to $16,200, news broke that as part of the Plustoken Ponzi system court proceedings, the Chinese government had seized $4.2 billion in cryptocurrencies. Rumors swirled that those tokens about to be dumped on the open market, thereby further collapsing prices.

Sino Global CEO Matthew Graham, however, wrote on Twitter that he thought that most of the Plustoken Bitcoin had been sold:

McGrath recommended traders learn to look beyond

Furthermore, whether or not the tokens were sold, McGrath recommended that traders learn to look beyond immediate headlines in an interview with Cointelegraph.

“It is important to be able to “cut through the noise” in the crypto and blockchain ecosystems,” he said. “We are long term bullish on Bitcoin and we continue to see the industry professionalise and mature as an asset class.”

McGrath also weighed in on Chinese cryptocurrency miners, a common boogeyman for Western crypto traders. Many have speculated that a 51 percent attack on the network could be carried out by Chinese miners, and some have long derided them for controlling vast portions of the BTC supply:

McGrath rejects both notions

“It is simply a lack of understanding that “Chinese miners” have been a “boogeyman” to Western traders. He said.” “In theory, of course we know that 51 percent of attacks can occur. But there is simply no level of centralization/coordination and incentives for top cryptos among the Chinese mining community.”

“With respect to the dumping of mined coins, etc. Chinese miners are likely to be affected by external factors that would cause them to handle mined coins differently. This is to be expected, he added, across various geographies.

McGrath declined to make Moonshot calls when asked about price targets. However, he did shed some light on Sino’s philosophy of investment.

Choose projects and teams that share a vision and have conviction in you. Invest in the long-term and don’t get caught up in the fluctuations of the daily market,’ he said. We are investing in teams and projects where we share a dream and have faith. If these projects can be found, supported and incubated, we’ve done our job.

Perhaps McGrath’s wisdom is worth considering. As cryptoasset prices resume their uptrend and we continue on into a new bull market.

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