Amid a devastating price drop earlier this week, cryptocurrency traders appeared to be plagued by all sorts of fear, uncertainty and suspicion. However, Dermot McGrath, head of research at blockchain investment firm Sino Global Capital, said the company favors a long-term view.
Shortly after Bitcoin dropped $ 16,200 on Thanksgiving Day, news emerged that the Chinese government had seized $ 4.2 billion in cryptocurrencies in a lawsuit against Plustoken Ponzi. It was rumored that these tokens are on the verge of dumping in the open market, and prices have fallen further.
However, Sino Global CEO Matthew Graham tweeted that he believes most of Plustoken’s bitcoins have been sold:
Additionally, whether the tokens are for sale or not, in an interview with Cointelegraph, McGrath encouraged traders to learn to look beyond the headlines.
“In cryptocurrency and blockchain ecosystems, it is important to be able to bypass noise,” he said. “We are optimistic about the long-term about Bitcoin and we still see the industry mature and professional as an asset class.”
McGrath also spoke of the usual bogeyman of Western cryptocurrency dealers – the Chinese cryptocurrency miners. Many have speculated that Chinese miners may carry out a 51% attack, and some have long ridiculed them for controlling large portions of Bitcoin’s supply:
However, McGrath rejects both offers.
“One of the reasons Chinese miners are a scarecrow for Western merchants is simply a lack of understanding,” he said. “In theory, we know of course 51% of attacks can happen, but the level of centralization / coordination and incentives just doesn’t exist among the Chinese mining community for the best cryptocurrencies.”
In regards to throwing mint coins, etc., it is possible that Chinese miners may be influenced by external factors that may cause them to treat mint coins differently. This should be expected in different geographical areas. ”
When asked about target prices, McGrath refused to name the moon shot. Nevertheless, he emphasized Sino’s investment philosophy.
“Choose the projects and teams in which you share the vision and are convinced of it. Invest in the long term and not be limited to the daily fluctuations of the markets.” “We invest in teams and projects in which we share the vision and are convinced. If we can find, support and incubate these projects, then we have done our job.”
With cryptocurrencies resuming their upward trend and entering a new beef market, it might be worth considering McGrath’s wisdom.