Tim Draper Recommends Bitcoin as a Tool for Businesses to Safeguard Against Bank Failures

According to billionaire investor Tim Draper, Bitcoin (BTC) can safeguard businesses in case of any potential banking crises.

In a memo directed towards startup founders, Draper suggests that businesses should diversify their cash management strategies due to the recent collapse of Silicon Valley Bank (SVB) and the government’s “over-regulation” of banks.

Draper advises businesses to consider keeping at least two payrolls worth of Bitcoin or other cryptocurrencies in their reserves as part of a contingency plan for bank failures, which could occur more frequently if the government continues to print money and manipulate interest rates to counteract inflation.

Draper recommends that businesses keep at least six months of short-term cash in each bank, one local and one global, and at least two payrolls worth of cash in Bitcoin or other crypto assets.

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Draper asserts that Bitcoin is a hedge against a “domino” run on banks and against poor over-controlling governance.

Draper previously predicted that Bitcoin would surge to $250,000 per BTC in the next 18 months, and currently, BTC is trading for $27,505.