There is no need to fear the Bitcoin FUD, says Sino Global Capital

November 29, 2020 Coin Payment

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In the midst of the crippling price declines earlier this week, cryptocurrency traders seemed beset on every side with fear, uncertainty and doubt. However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the company prefers to have a long-term view.

Shortly after a Thanksgiving Bitcoin drop to $ 16,200, news emerged that the Chinese government had seized $ 4.2 billion in cryptocurrencies as part of the Plustoken Ponzi scheme’s court case. There were rumors that those tokens were ready to be downloaded on the open market, causing prices to drop further.

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

Furthermore, regardless of whether the tokens have been sold or not, in an interview with Cointelegraph McGrath recommended that traders learn to look beyond immediate stocks.

“In crypto and blockchain ecosystems it is important to be able to ‘cut the noise’,” he said. “We are long-term optimistic about Bitcoin and continue to see the industry professionalize and mature as an asset class.”

McGrath also considered a common black man for Western cryptocurrency traders: Chinese cryptocurrency miners. Many have speculated that Chinese miners could conduct a 51% attack on the network and have long been mocked by some for controlling large swaths of BTC supply:

McGrath, however, rejects both notions.

“Some of the reasons why” Chinese miners “have been a” black man “to Western traders is simply a lack of understanding,” he said. “In theory, of course we know that 51% attacks can occur, but the level of centralization / coordination and incentives simply does not exist among the Chinese mining community for the best cryptocurrencies.”

“Regarding the dumping of mined coins, etc. It is possible that Chinese miners are influenced by external factors that would cause them to handle mined coins differently. This is to be expected in several geographic areas, “he added.

When asked about price targets, McGrath declined to make moonlight calls. However, it shed light on Sino’s investment philosophy.

“Choose projects and teams in which you share a vision and you have conviction. Invest for the long term and don’t get caught up in daily market fluctuations,” he said. “We invest in teams and projects where we share a vision and have conviction. If we can find, support and incubate these projects, we’ve done our job. ”

As cryptocurrency prices resume their uptrend and continue towards a new bull market, perhaps McGrath’s wisdom is worth considering.