{"id":622190,"date":"2023-03-26T13:49:13","date_gmt":"2023-03-26T18:49:13","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/26\/billionaire-tim-draper-tells-businesses-to-hold-bitcoin-in-the-svb-aftermath\/"},"modified":"2023-03-26T13:49:13","modified_gmt":"2023-03-26T18:49:13","slug":"billionaire-tim-draper-tells-businesses-to-hold-bitcoin-in-the-svb-aftermath","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/26\/billionaire-tim-draper-tells-businesses-to-hold-bitcoin-in-the-svb-aftermath\/","title":{"rendered":"Billionaire Tim Draper tells businesses to hold Bitcoin in the SVB aftermath"},"content":{"rendered":"
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\"Billionaire Billionaire Tim Draper tells businesses to hold Bitcoin in the SVB aftermath<\/span> Assad Jafri \u00b7<\/span> 3 hours ago<\/span> \u00b7 2 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n

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Draper said cryptocurrencies are a good option to hold excess cash as it needs to be a long-term holding that is easily saleable in times of crisis.<\/p>\n

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2 min read<\/span><\/p>\n

Updated:<\/span> March 25, 2023 at 3:25 pm<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Cover art\/illustration via CryptoSlate<\/p>\n<\/div>\n<\/div>\n

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\"CoinDesk<\/a><\/section>\n

Billionaire venture capitalist Tim Draper believes<\/a> businesses should hold \u201cat least two payrolls worth of cash\u201d in Bitcoin (BTC) and other cryptocurrencies.<\/p>\n

Draper did not specify the percentage allocated to Bitcoin versus altcoins. However, he called BTC a hedge against deteriorating economic conditions.<\/p>\n

Bitcoin is a hedge<\/h2>\n

Draper said that the collapse of banks like Silicon Valley and Silvergate shows the need for contingency plans to ensure that a business always has cash at hand to be able to sustain itself and its employees. He added that governments have been over-regulating and micromanaging the banking sector, harming its long-term health.<\/p>\n

He said businesses need to diversify and decentralize to remain sustainable in the current economic conditions. Such bank collapses will become more likely if governments continue over-printing money and whipsawing the interest rate to contend with the resulting inflation.<\/p>\n

Draper said that state takeovers and lenders\u2019 bailouts are making governments susceptible to insolvency, and Bitcoin offers a potential solution. He said:<\/p>\n

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\u201cBitcoin is a hedge against a \u2018domino\u2019 run on the banks and on poor over-controlling governance.\u201d<\/p>\n<\/blockquote>\n

He added that cryptocurrencies are an excellent option to hold excess cash as they need to be a long-term holding readily saleable in times of crisis.<\/p>\n

Suggestions for cash management<\/h2>\n

Holding excess cash in crypto was one of many suggestions he shared on cash management for businesses contending with the collapse of multiple U.S. banks in recent weeks.<\/p>\n

Draper advised businesses to diversify their risk and hold their short-term cash in two banks \u2014 one local and one global. He said the amount should be enough to sustain the business for at least six months.<\/p>\n

Additionally, he advised businesses to incorporate yield and capital appreciation into their plans as interest rates are high now, but so is inflation \u2014 so returns on a company\u2019s cash holdings can be \u201cmission critical.\u201d He said:<\/p>\n

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\u201cNormally a company\u2019s treasury department is mostly meant to preserve cash, but these are not normal times.\u201d<\/p>\n<\/blockquote>\n

He also recommended that businesses ensure the clients and suppliers it works with are healthy and will not cause unforeseen issues. Draper advised having \u201cfrank and honest\u201d discussions with relevant parties.<\/p>\n

Other suggestions included being wary of hacking and phishing and protocol tips on what to do in case it happens.<\/p>\n

Draper also recommended businesses embrace decentralization and move away from the corporate ladder by setting up redundancies to ensure decisions are made efficiently.<\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Assad Jafri<\/p>\n","protected":false},"excerpt":{"rendered":"

Billionaire Tim Draper tells businesses to hold Bitcoin in the SVB aftermath Assad Jafri \u00b7 3 hours ago \u00b7 2 min read Draper said cryptocurrencies are a good option to hold excess cash as it needs to be a long-term holding that is easily saleable in times of crisis. 2 min readUpdated: March 25, 2023<\/p>\n","protected":false},"author":1,"featured_media":622191,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132,111057],"tags":[],"class_list":{"0":"post-622190","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-billionaire","8":"category-draper"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/622190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=622190"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/622190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/622191"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=622190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=622190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=622190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}