Billionaire venture capitalist Tim Draper has urged businesses to consider diversifying their cash management strategies and holding a portion of their reserves in Bitcoin (BTC) and other cryptocurrencies. Draper, who is known for his bullish stance on Bitcoin, suggests that companies should keep at least two payrolls worth of cash in digital currencies.
The call comes amidst a period of economic uncertainty and increasing government regulation, which could potentially lead to bank failures. Draper emphasizes the need for contingency plans that can help businesses weather financial crises, and reduce their reliance on one bank or governing body.
In his Founder Considerations for Cash Management document, Draper advises companies to diversify their risk by keeping six months of short-term cash in each of two banks, one local and one global. He suggests that businesses should also hold at least two payrolls worth of cash in Bitcoin or other cryptocurrencies, as a hedge against economic uncertainty.
Draper argues that governments are taking over banks, and that governments themselves are at risk of becoming insolvent. Bitcoin, he claims, is a hedge against a “domino” run on the banks and on poor over-controlling governance.
The venture capitalist also highlights the importance of yield and capital appreciation in cash management, and the need for companies to be aware of fraud and the vulnerabilities of their customers and suppliers.
Draper’s call for businesses to diversify their cash management strategies and hold reserves in Bitcoin is not new. However, it does come at a time when Bitcoin’s value has been on a rollercoaster ride, with the cryptocurrency reaching new all-time highs before experiencing a sharp decline. Nevertheless, Draper remains bullish on Bitcoin, and he believes that it can play an important role in helping businesses weather financial storms.
Overall, Draper’s call for businesses to consider holding a portion of their cash reserves in Bitcoin and other cryptocurrencies highlights the increasing interest in digital assets as a hedge against economic uncertainty. As governments continue to print money and interest rates fluctuate, it seems likely that more companies will follow Draper’s advice and explore the potential benefits of holding digital currencies.
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This article was republished from azcoinnews.com
