As the government continues to print money and raise interest rates, American venture capitalist Tim Draper is urging entrepreneurs to diversify their assets in preparation for the possible collapse of new banks.
In response to the recent collapse of Silicon Valley Bank (SVB), Draper is recommending that businessmen invest in at least bitcoin and one other alternative coin.
He believes that bitcoin serves as a hedge against excessive government intervention and the domino effect of collapsing banks. Draper argues that businesses can no longer depend on any single bank or government agency to manage their finances.
Instead, he suggests that they should have at least two accounts with different banks, with deposit periods of no more than six months. It’s also important to have banks with different jurisdictions – one local and one international.
According to Draper, diversification is necessary because, for the first time in a long time, governments have taken control of banks and are themselves at risk of insolvency. Many startups have turned to Draper for help after the collapse of SVB and other banks.