Tim Draper: Bitcoin Is A Hedge Against Bank Run Crisis

It seems that Bitcoin is indeed hope for the world, as the bank-run crisis continues. According to the latest reports, the billionaire Tim Draper said that Bitcoin could be used as a tool for business to hedge against any potential banking crisis.

Check out the following reports about the issue below.

In a new memo directed at startup founders, Tim Draper says the recent collapse of Silicon Valley Bank (SVB), together with the “over-regulation” of banks by the government means business founders should consider a more diversified strategy of cash management.

“Since boards and management are responsible for making payroll, even in times of crisis, it is important to build out contingency plans for bank failures that could happen more and more often if government continues to print money and whipsaw interest rates to counteract inflation caused by the over-printing of money.”

He also made sure to explain the fact that businesses should consider holding at least two payrolls worth of Bitcoin or other crypto assets in their reserves as part of a diversification strategy.

“Businesses can no longer rely on one bank or one governing body to manage their cash. We recommend keeping at least six months of short-term cash in each of two banks, one local bank and one global bank, and at least two payrolls worth of cash in Bitcoin or other crypto currencies.”

An important trader believes that Bitcoin’s (BTC) current market structure looks similar to its price action in the second half of 2020. The time was long before the king crypto convincingly took out the $20,000 level.

Pseudonymous trader Cantering Clark said recently that Bitcoin looks bullish after managing to absorb the sell-off last Friday.

According to the analyst, BTC bulls have the upper hand as long as Bitcoin trades above support at $27,000.

“So we failed to break out of the inside day setup, and instead it looks like we accumulated a bit of panic selling below. Coin margined OI (open interest) is up, probably due to hedging, and some long stablecoin margined OI is down, part of the flush. I grabbed a long as long as yesterday’s lows hold.”