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. Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox Check Price Action Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Check Latest News Headlines Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Billionaire Tim Draper Says Bitcoin (BTC) a Hedge Against Potential Domino Bank Run Crisis appeared first on The Daily Hodl.
Source : [Billionaire Tim Draper Says Bitcoin (BTC) a Hedge Against Potential Domino Bank Run Crisis](dailyhodl.com/2023/03/27/billionaire-tim-draper-says-bitcoin-btc-a-hedge-against-potential-domino-bank-run-crisis/) by Daily Hodl Staff - Tim Draper Two Bitcoin•The Daily Hodl by Daily Hodl Staff / March 27, 2023