Venture capitalist Tim Draper suggests that businesses hold at least two payrolls worth of cash in Bitcoin or other cryptocurrencies as a hedge against deteriorating economic conditions, as CryptoSlate reveals.
He believes that the collapse of banks such as Silicon Valley shows the need for contingency plans to ensure businesses always have cash at hand to sustain themselves and their employees. Draper suggests businesses diversify and decentralize to remain sustainable in the current economic conditions, as bank collapses will become a more plausible scenatio if governments continue over-printing money and whipsawing the interest rate to contend with the resulting inflation.
He also advises businesses to diversify their risk, hold short-term cash in two banks, and incorporate yield and capital appreciation into their plans.
— Tim Draper (@TimDraper) March 24, 2023
Tim Draper is best known as a venture capitalist and a prominent figure in the world of cryptocurrency. He is the founder of Draper Associates, a venture capital firm that has invested in a number of successful companies, including Hotmail, Skype, and Tesla.
Draper has been a vocal proponent of cryptocurrency, and he was an early investor in Bitcoin. In 2014, he purchased nearly 30,000 bitcoins that had been seized by the US Marshals Service, which at the time were worth approximately $19 million. He has also invested in a number of other cryptocurrencies, including Ethereum and Tezos.
In addition to his work as a venture capitalist, Draper is also a philanthropist and an advocate for entrepreneurship and innovation. He has founded a number of organizations and initiatives aimed at supporting entrepreneurs and promoting innovation, including the Draper Richards Kaplan Foundation and the Draper University entrepreneurship program.
Investing in Bitcoin involves certain risks that should be considered before making a decision. Bitcoin’s value can be highly volatile, with significant price swings occurring in a short amount of time. Additionally, Bitcoin is not backed by any government or physical asset, and there is no guarantee of its value.