After a week of pessimistic headlines and a brutal price drop, traders would do well to think long term.
There is no reason to ‚fear, uncertainty and doubt‘ about Bitcoin, according to Sino Global CapitalNOTÍCIAS
Amidst the paralyzing price declines earlier this week, cryptomeda traders seemed bombarded on all sides by fear, uncertainty and doubt (Fear, Uncertainty and Doubt – FUD). However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the company preferred a long-term view.
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Shortly after Bitcoin fell to $16,200 on Thanksgiving, news emerged that the Chinese government had confiscated $4.2 billion in cryptomoedas as part of the Plustoken scheme’s court proceedings. Rumors circulated that the tokens were about to be discarded on the open market, further dropping prices.
However, Global Bell CEO Matthew Graham wrote on Twitter that he believed most of the Bitcoins in the Plustoken pyramid had been sold:
Humm my interpretation is that *when* everything was sold, but yes, there is no need for FUD, I agree. https://t.co/NAq5iSRoXz
– Matthew Graham (@mattysino) November 27, 2020
Also, whether the tokens have been sold or not, in an interview with Cointelegraph McGrath recommended that traders learn to look beyond the immediate headlines.
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„In cryptomonas and blockchain ecosystems, it is important to be able to ‚cut the noise‘,“ he said. „We are optimistic about Bitcoin in the long term and we continue to see the industry becoming professional and mature as an asset class.
McGrath also suggested a common bogeyman Bitcoin Trader for Western cryptomore-miners. Many have speculated that Chinese miners could conduct a 51% attack on the network, and have long been ridiculed by some for controlling large areas of BTC supply:
The legal thing about China having and mining a ton of Bitcoins is absolutely nothing.
McGrath, however, rejects both notions.
„Some of the reasons why „Chinese miners“ have been the „bogeyman“ for Western traders is simply a lack of understanding,“ he said. „In theory, of course we know that 51% of attacks can occur, but the level of centralisation / coordination and incentives simply does not exist among the Chinese community for the major crypts“.
„Regarding the dump of mined coins, etc. It is possible that Chinese miners will be affected by external factors that would cause them to manage the mined coins differently. This is expected in different parts of the world,“ he added.
When asked about the price targets, McGrath refused to make price calls „on the moon. He did, however, shed some light on Sino’s investment philosophy.
„Choose projects and teams in which you share a vision and have conviction. Invest in the long term and don’t be caught up in the day-to-day fluctuations of the market,“ 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 have done our job. ”
As prices of cryptomorphs resume their upward trend and we remain in a new bullish market, it may be worth considering McGrath’s analysis.