After the recent thunderstorms in the banking industry in the United States and Europe, Tim Draper, the godfather of Silicon Valley venture capital and the founder of Draper Associates, published a public proposal to business founders on the 25th to provide advice on corporate cash management. He advocated that companies should hold at least Double the payroll in bitcoin or other cryptocurrencies.
Tim Draper did not give a specific recommendation on the proportion of Bitcoin and altcoins, but he emphasized that Bitcoin is a hedging tool to hedge against deteriorating economic conditions. As a bitcoin bull, he reiterated his prediction in January this year that the price of bitcoin would reach $250,000, which he believed would be achieved before the 2024 halving.
Tim Draper mentioned in this public advice that the failure of banks such as Silicon Valley Bank and Silvergate shows that companies need to have contingency plans to ensure that they always have cash on hand to sustain themselves and their employees. He also attacked the government for excessive regulation. , micro-managing the banking industry, and damaging the long-term health of the banking industry.
In Tim Draper's view, companies need to be diversified and decentralized in order to develop sustainably in the current economic conditions. If the government continues to print excessive money and distort interest rates to deal with inflation, then banks like Silicon Valley Bank and Silvergate will fail The possibilities will increase.
Tim Draper believes that government takeovers and bank bailouts are making it easier for governments to go bankrupt, and that Bitcoin is "a means of hedging against domino runs and bad overgovernance in banks," and that cryptocurrencies are an excellent way to hold excess cash. Because in times of crisis, it can become a long-term position that can be sold at any time.
Other Cash Management Advice
In addition to investing excess cash in cryptocurrencies, Tim Draper also puts forward many cash management suggestions for companies. For example, companies can deposit short-term cash in two banks, one is a local bank and the other is a global bank. The deposit amount should be sufficient to maintain The business has been in business for at least 6 months.
Tim Draper further suggested that companies should incorporate yield and capital appreciation into their cash management plans, as interest rates are currently high, but inflation is also high, so the rate of return on corporate cash holdings may be critical, he also suggested, Enterprises should communicate smoothly and have a healthy cooperative relationship with customers and suppliers to prevent unforeseen problems.
In addition, Tim Draper also advises enterprises to beware of hacker attacks, phishing, etc., and hopes that enterprises can embrace decentralization and deal with redundant staff, so as to make decisions and judgments efficiently.
