The recent collapse of Silicon Valley Bank has left entrepreneurs wondering and worrying. Fortunately, Tim Draper, a well-known venture capitalist, has stepped forward to tell them how to protect themselves. The answer is one word: Bitcoin.
To protect yourself from the crisis, Bitcoin is not an option, it’s THE solution
If you’re a business owner and don’t know how to prepare for the crisis, Tim Draper has the solution: Hold at least twice your company’s payroll in digital assets, including bitcoin.
Why Bitcoin? Well, according to Tim, BTC is a perfect hedge against the financial problems caused by the fall of the Silicon Valley Bank. Companies must be prepared for difficult situations without relying solely on banks or the government.
To diversify its short-term liquidity, Draper also suggests split the financing between a local bank and an international bank.
Not being a maximalist BTC, Tim Draper adds that of course it is always good to diversify your (digital) assets.
Finally, Draper emphasizes the importance of having a backup plan in case of an inflationary crisis caused by the massive printing of money. Many startups have indeed been forced to seek emergency funding following the mishap with the Silicon Valley Bank. To avoid this situation, companies must be proactive and prepare for the challenges ahead.
Tim Draper warns of upcoming scams
In times of crisis, the number of scams is likely to explode. Tim also has a tip on this: it’s crucial to meet payment deadlines and maintain close communication between all parties involved.
To take it a step further, although Tim doesn’t say it directly, it’s also essential to start building good habits by using wallets like Ledger and leaving as few funds as possible on exchanges. Indeed, these are likely to fall prey to more hacking attempts if many companies get into cryptocurrencies.
Investing in digital assets like Bitcoin, diversifying your cash in the short term, anticipating fraud risks and preparing for inflation are all valuable tips for businesses. In the face of the crisis, it’s crucial to stay vigilant and implement the right strategies to survive. Fortunately, Bitcoin and cryptocurrencies are there for that too!
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.