dailyhodl.com
Billionaire investor Tim Draper says that Bitcoin (BTC) could be a tool for businesses to hedge against any potential banking crisis.
In a new memo directed at startup founders, Draper says the recent collapse of Silicon Valley Bank (SVB), plus the “over-regulation” of banks by the government means business founders should consider a more diversified strategy of cash management.
“Since boards and management are responsible for making payroll, even in times of crisis, it is important to build out contingency plans for bank failures that could happen more and more often if government continues to print money and whipsaw interest rates to counteract inflation caused by the over-printing of money.”
The venture capitalist says businesses should consider holding at least two payrolls worth of Bitcoin or other crypto assets in their reserves as part of a diversification strategy.
“Businesses can no longer rely on one bank or one governing body to manage their cash. We recommend keeping at least six months of short-term cash in each of two banks, one local bank and one global bank, and at least two payrolls worth of cash in Bitcoin or other crypto currencies.
Excess cash can be longer term, but easily saleable in emergencies. For the first time in many years, governments are taking over banks and governments themselves are at risk of becoming insolvent.
Bitcoin is a hedge against a ‘domino’ run on the banks and on poor over-controlling governance.”
Earlier this month, Draper said he was nearly 100% sure that Bitcoin would explode to $250,000 per BTC in the next 18 months.
At time of writing, BTC is trading for $27,505.
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