Tim Draper , an American venture capitalist, cautioned business owners to brace themselves for “more and more” bank collapses if the government continues to “print money and whipsaw interest rates.”
In reaction to the ambiguity caused by the failure of Silicon Valley Bank, American venture capitalist and entrepreneur Tim Draper urged creators to store at least two payrolls’ worth of funds in Bitcoin or alternative coins. (SVB).
Tim Draper stated in a March 25 report aimed at business owners that Bitcoin is a safeguard against a “domino run” on banks and excessive government interference, and that companies “can no longer rely” on a single bank or ruling body to handle their currency.
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Some tips for business cash management post SVB. https://t.co/dVEw0EJJyZ #bitcoin #trust #freedom
— Tim Draper (@TimDraper) March 24, 2023
Draper advised entrepreneurs to maintain at least “6 months of short-term cash” in two separate bank accounts, one with a local bank and the other with a foreign bank.
Businesses should also have at least two payrolls “worth of cash” in Bitcoin and other coins, according to him.
Draper stated that these precautions were essential because governments are taking control of banks for the “first time in many years,” and governments themselves are “at risk of becoming insolvent.”
He went on to say that “many startups” requested “emergency relief” from him after SVB and other institutions went bankrupt.
Furthermore, he cautioned that boards and management are accountable for making payroll obligations “even in times of crisis,” implying that being well-prepared is critical. He mentioned:
It is critical to prepare for bank collapses, which may become more common if the government continues to create money and whipsaw interest rates to combat inflation caused by over-printing of money.
He also cautioned companies to stay cautious against fraud, adding that fraudsters are proficient at finding and exploiting system weaknesses.
Furthermore, he told creators that phishing theft can be avoided by confirming with all parties involved whenever wire directions or a new clearance system are changed.
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This follows Tim Draper’s performance of a self-composed Bitcoin Song at the conclusion of his main address on March 22 at Paris Blockchain Week 2023.
He dedicated the tune to Silicon Valley Bank and “all the banks that have failed and will fail.”
The crowd applauded the song, and Draper concluded his time on stage by stating blockchain, Bitcoin, and smart contracts are part of one of the “greatest transitions in the history of the world.”