American venture capital investor and billionaire Tim Draper warns entrepreneurs to prepare for “more and more” bank failures if the government continues to “print money and swing interest rates”. His advice: invest in Bitcoin to protect yourself from the risks of the traditional financial system.
How entrepreneurs can protect themselves
Tim Draper, an American venture capital investor and entrepreneur, is recommending that entrepreneurs keep at least two paychecks of money in Bitcoin or alternative cryptocurrencies, along with other diversification recommendations, in response to the uncertainty created by the collapse of Silicon Valley Bank (SVB). ).
In a report of March 25 aimed at entrepreneurs, Tim Draper argued that Bitcoin is insurance against a chain reaction of bank runs and excessive government intervention, adding that companies “can no longer rely” on a single bank or regulatory body to manage their money. Draper suggests that business owners should hold at least “6 months’ worth of short-term cash” in two separate bank accounts – one with a local bank and one with an international bank.
In addition, Draper stressed the importance of contingency plans, as boards and management are responsible for meeting salary deadlines “even in times of crisis.” He added:
“It is important to prepare contingency plans for bank failures that could become more common if the government continues to print money and swing interest rates to counter inflation caused by money printing.”
Who is Tim Draper?
Tim Draper is an American venture capitalist and entrepreneur. He is the founder of Draper Associates, a venture capital firm that has invested in companies such as Skype, Hotmail, Tesla and Baidu. Draper is also the founder of Draper University, a school for entrepreneurs based in Silicon Valley.
Draper is known for his early investments in technology companies, especially during the dot-com era. He strongly believes in the transformative power of technology and is a proponent of cryptocurrencies and blockchain technology.
Draper bought in 2014 for example, nearly 30,000 bitcoins at a US Marshals Service auction, which was worth about $19 million at the time. This investment is worth a total of $837.21 million at the current price of $27,907. He has also invested in other digital currencies and blockchain-related start-ups.
