Billionaire Tim Draper advises firms to retain Bitcoin after the SVB

Draper said cryptocurrencies are an excellent alternative for storing extra cash since they must be long-term assets that can be sold quickly in times of crisis.

Draper did not define the ratio of Bitcoin to other cryptocurrencies. He referred to Bitcoin as a hedge against worsening economic circumstances.

Draper said that the failure of banks such as Silicon Valley and Silvergate demonstrates the necessity for a firm always to have sufficient cash to support itself and its staff. He noted that governments’ excessive regulation and micromanagement of the banking industry were detrimental to its long-term health.

According to Draper, state takeovers and banker bailouts make government bankruptcy more likely, and Bitcoin provides a viable remedy.

He stated that cryptocurrencies are a fantastic alternative for retaining extra cash since they must be long-term assets that can be sold quickly in times of crisis.

Among the numerous cash management recommendations he made for companies coping with the failure of many U.S. banks in recent weeks, holding extra cash in crypto was one.

Draper encouraged firms to retain their short-term capital in two banks — one local and one international.

Moreover, he recommended firms include yield and capital appreciation into their strategies since current interest rates are high, but so is inflation, making returns on cash holdings “mission-critical.” He said:

“The primary purpose of a company’s treasury department in normal circumstances is to safeguard cash. However, these are not regular times.”

In addition, he suggested that firms verify their clients and vendors are healthy and would not pose unanticipated problems. Draper told having “open and sincere” conversations with key parties.

Other ideas included being careful of hacking and phishing and protocol advice for when it occurs. Draper also suggested that corporations embrace decentralization and abandon the corporate ladder by instituting redundancies to guarantee efficient decision-making.

Read Also: Charles Hoskinson claims that the US government is fighting against crypto and implores industry leaders to take action

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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