Bitcoin-FUD no cause for concern

Sino Global Capital: Bitcoin-FUD no cause for concern

After the bitter price slump, traders would do well to think long-term.

Amid the price slump earlier this week, crypto-currency traders on all sides were plagued by fear, uncertainty and doubt. However, Dermot McGrath, head of research at block-chain investment firm Sino Global Capital, said the company was looking at the long term.

Shortly after Bitcoin collapsed to $16,200, it became public that the Chinese government had confiscated $4.2 billion in crypto-currencies as part of the court case The News Spy on the Plustoken pyramid scheme. Rumours were circulating that these coins were to be sold on the free market, causing prices to plummet further.

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

hmm my interpretation was *mostly* sold but yes, there’s no need for FUD, agree
– Matthew Graham (@mattysino) November 27, 2020

Regardless of whether the coins were sold or not, McGrath recommended in an interview with Cointelegraph that traders should learn to look beyond the headlines.

„In crypto and block chain ecosystems, it is important not to be distracted by noise,“ he said. „We are optimistic about Bitcoin in the long term. We continue to see the industry as an asset class that is professionalising and maturing“.

McGrath also commented on the bogeyman for Western crypto traders, namely the Chinese crypto currency miners

Many people suspected that Chinese miners could launch a 51 per cent attack on the network. They were long ridiculed for controlling large parts of the BTC supply:

the cool thing about china having a ton of bitcoins and mining a ton of bitcoins is absolutely nothing
– CryptoGainz (@CryptoGainz1) November 27, 2020

McGrath, however, denied both ideas.

„One reason that ‚Chinese miners‘ were the ‚bogeymen‘ for Western traders is simply a lack of understanding,“ he said. „In theory, of course, we know that 51% attacks can occur, but the necessary centralisation/coordination and incentives are simply not available in the Chinese miner community for top cryptos.

„When we talk about the sale of minted coins, it is possible that the Chinese miners are influenced by external factors that would cause them to deal with the minted coins differently. This can be expected in different regions,“ he added.

McGrath did not make any reckless predictions when he was asked for one. However, he did explain Sino’s investment philosophy.

„We select projects and teams that share a vision and are convinced. We invest for the long term and do not get carried away by the daily market fluctuations,“ he said. „We invest in teams and projects with whom we share a common vision and conviction. If we can find, support and advance these projects, then we have done our job right“.