​Billionaire Tim Draper calls BTC protection against bank failures

American venture capital investor and entrepreneur Tim Draper suggested founders keep at least two payrolls worth of cash in Bitcoin BTC $27,001 or alternative cryptocurrencies, along with other diversification recommendations, in response to the uncertainty created by the collapse of Silicon Valley Bank (SVB).

In a March 25 report directed at business founders, Tim Draper stated that Bitcoin is a hedge against a “domino run” on the banks and overbearing government intervention, adding that businesses “can no longer rely” on a single bank or governing body to manage their cash.

Draper suggested that business founders keep at least “6 months of short-term cash” in two separate bank accounts — one with a local bank and another with an international bank.

He noted that businesses should also have at least two payrolls “worth of cash” in Bitcoin and other cryptocurrencies.

These preventative steps were necessary, according to Draper, because for the “first time in many years,” governments are seizing control of banks, and governments themselves are “at risk of becoming insolvent.”

He further revealed that “many startups” sought emergency relief from him after SVB and other banks shut down.

Additionally, Draper emphasized the importance of contingency plans, as boards and management are responsible for meeting payroll deadlines “even in times of crisis.“ He added:

Draper reminded founders to be vigilant against the risk of fraud, noting that fraudsters are skilled at identifying weaknesses in a system and exploiting them.

Furthermore, to prevent phishing theft, he advised founders to verify with all parties involved whenever there is a change in wire instructions or a new approval system.

This comes after recent news that Draper performed a self-composed Bitcoin song after his keynote speech at Paris Blockchain Week 2023 on March 22.

He said the song was dedicated to SVB and “all the banks that have failed and will fail.”

The song received a round of applause from the audience, with Draper concluding his time on stage by saying blockchain, Bitcoin and smart contracts make up one of the “greatest transitions in the history of the world.”

This material is taken from the website https://cointelegraph.com.