Tim Draper says Bitcoin is a hedge against a ‘domino’ run on the banks
The popular American investor suggested businesses hold some funds in Bitcoin & crypto assets.
Timothy Cook Draper is a 65 years old American venture capital investor, and founder of Draper Fisher Jurvetson (DFJ), Draper University, Draper Venture Network, Draper Associates, and Draper Goren Holm. In the crypto sector, he is known for his advocacy in support of Bitcoin adoption.
Tim Draper recently shared his suggestion for Venture capitalists (VCs) to hold “at least two payrolls worth of cash” in Bitcoin (BTC) and other crypto assets.
Draper said that the recent US banking crisis showed that we should remain ready ahead of the bad economical situation and always remain ready with in-hand cash to survive with employees.
Further, he also added that there is a need for the companies to diversify their portfolio, to maintain their financial position.
In the highly pressurised economic situation of the US and rescue, the failed banks will weaken the economy but in that situation Bitcoin will be a better option against the problem.
“Bitcoin is a hedge against a ‘domino’ run on the banks and poor over-controlling governance,” Tim Draper said.
According to Draper, crypto assets are the best choice to hold excess cash because companies can easily sell in long-term holding periods.
Under the current banking crisis, Draper suggested companies use two bank accounts (one domestic & one global) and also should hold reserved funds to run the company for a minimum of 6 months.
Bitcoin price
The current trade price of Bitcoin is $27,804 & this trade price is 64.5% high over the last 3 months of trade price.
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