VC Tim Draper advises firms to hold at least two payrolls worth of cash in Bitcoin amid US banking concerns
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The idea of a contagion of banking woes in the US and Europe have created something of a spread of jittery stomachs across the globe ever since news broke of the SVB collapse.
Billionaire American venture capital investor and entrepreneur Tim Draper has certainly picked up on the fear. Take what he says with a grain of salt, of course, because Draper is a massive Bitcoin bull and has been for quite some time.
And there are a few of those around just lately making some pretty wild statements – yep, looking at you Balaji “BTC to $1m in 90 Days” Srinivasan.
Short of an official Bitcoin marketing agency, influential bulls such as Draper, Srinivasan, Microstrategy founder Michael Saylor, ARK Invest’s Cathie Wood and several others have camped out on the social media rooftops lately, laying on thick the BTC as gold 2.0 safe-haven gospel.
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BIG if true 🔥 pic.twitter.com/YVonPrTWFD
— JQuantAnalytics ⚡️ (@JQuantAnalytics) March 25, 2023
Bitcoin tie-wearing, wild-eyebrowed VC Draper has tweeted out a PDF report (see below) detailing his tips and advice for business founders on how to manage their funds in the wake of the Silicon Valley Bank collapse and amid potential banking contagion fears spreading further across the US and Europe.
— Tim Draper (@TimDraper) March 24, 2023
Draper, who recently reiterated his belief that Bitcoin can hit US$250k in 2023, said that Bitcoin is a hedge against a “domino run” on the banks and “poor, over-controlling governance”.
He added that businesses “can no longer rely” on a single bank or governing body to manage their cash and urged firms to hold at least funds worth two times their payroll in Bitcoin or other crypto assets.
The entrepreneur also advised that firms should keep short-term cash diversified in two accounts, noting that it’d be better, in his opinion, to hold some funds (at least “6 months of short-term cash”) in a local bank and some in an international bank.
Draper believes that for the “first time in many years,” governments are seizing control of banks, and are “at risk of becoming insolvent” themselves.
“It is important to build out contingency plans for bank failures that could happen more and more often if the government continues to print money and whipsaw interest rates to counteract inflation caused by the over-printing of money,” he added.
And if you needed more convincing that Draper loves Bitcoin, by the way, here’s part of a little ditty he penned for the recent Paris Blockchain Week 2023 summit…
— Daniel Nita 🇷🇴 (@realdanielnita) March 22, 2023