Tim Draper has urged founders of businesses and firms to hold at least funds worth two times their payroll in digital assets. The venture capitalist was reacting to the uncertain conditions brought about by the fall of the Silicon Valley Bank. In a statement that was published on Twitter, the entrepreneur wrote to founders about how they could safeguard their funds from some of these issues.
Tim Draper says firms should hold Bitcoin
Tim Draper mentioned in his statement that Bitcoin has been known to be a perfect hedge against issues like these. He also said that businesses should stop leaning on banks or the government to help them manage their funds. The entrepreneur also advised that firms should keep short-term cash diversified in two accounts. In his opinion, it would be better if the bank held some funds in a local bank and the other one in an international bank.
Tim Draper also said that if the firm does not want to hold Bitcoin, it might consider holding some of the other digital assets available in the market. He explained that founders need to go through these steps because banks are going insolvent and are being taken over by the government, which is also being threatened with insolvency.
Draper warns against criminal elements
The venture capitalist also urged companies to do well to meet payment deadlines as it is their responsibility. He noted that even when there is an ongoing internal crisis, they should always make payments. Draper said that firms should have other plans in place in the case of a crisis that could occur because of the inflation caused by the massive printing of money. He added that the reason for this tip was that most startups have been coming to him for emergency funds after the mishap that occurred with SVB.
Draper also warned founders to spot fraudulent activities as fraudsters are very good at identifying weaknesses. He also noted that they could reduce phishing thefts if all the parties involved are in communication. This way, there is always an alert anytime a rule or instruction changes. This statement is coming off after a recent performance that he made at the just concluded blockchain conference in Paris. He finalized his song by noting that blockchain has been the best transition since the inception of humanity.
