There was a lot of excitement last week as Bitcoin’s price soared towards the dizzying height it reached in late 2017, only to suddenly see a rather dramatic price correction, creating Fear, Uncertainty and Doubt (FUD) in Bitcoin traders. But, Dermot McGrath at Sino Global Capital, as blockchain investment specialist, said in response to the situation that his firm would not be giving into FUD, and instead would take a longer-term view.
McGrath also suggested that traders take little notice of the Chinese governments seizure of $4.2 billion in cryptocurrenices, in relation to Plustoken. Rumours circulated after Bitcoin’s sudden dip to $16,200 that those tokens were poised to be dumped on the open market, crashing prices further. However, Sino Global CEO Matthew Graham wrote on Twitter that he believed the majority of the Plustoken Bitcoin had been sold, thus removing the problem.
McGrath then said that traders should really be looking beyond the current headlines, which he sees as just “a lot of noise.” He said, “We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class.”
He also has a view about Chinese crypto miners, who are often seen as a bogeyman to Western crypto traders. Some of them think the Chinese miners might launch a 51% attack on BTC network, because they have for some time “been derided by some for controlling vast swaths of the BTC supply,” McGrath said. He also said that this view of the Chinese had arisen from “a lack of understanding.” He explained, “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 miner community for top cryptos.”
As we start with the week with Bitcoin enjoying another uptick in value, perhaps McGrath is right, and we should ignore the FUD and look to the future.