United States private equity investor and businessman Tim Draper recommended that creators maintain a minimum of two payrolls of monetary equivalent in BTC or other digital currencies, as well as diversify investments, as a result of the indecision brought about by the fall of Silicon Valley Bank (SVB).
According to a Saturday statement directed at venture creators, Tim Draper noted that BTC is a shield against a contagion effect on the financial institutions and autocratic state involvement.
Draper also highlighted that business ventures can no longer trust any traditional financial institution or federal ruling body to oversee their funds.
As advised by Draper, venture creators should focus on retaining a minimum of “6 months of short-term cash” in two distinct accounts, preferably a national and an international bank account.
He also suggested that businesses keep a minimum of two payrolls of monetary worth in BTC or other alternative digital currencies.
While disclosing that many startups had solicited emergency funds from him after the SVB collapse, Draper emphasized that all his suggestions are necessary measures as federal governing bodies are taking over control of local banks and are, themselves, prone to being bankrupt.
The private equity investor also reminded venture creators to be cautious of probable scams that may arise due to a weak system.