Tim Draper Urges Bitcoin Startups To Ensure Long-Term Holding Of Their BTCs
Time for Using Bitcoin As Hedge Has Come
Tim Draper is best known in the world for not just being a smart venture capitalist but also for being a massive Bitcoin investor. He has been a big-time investor in Bitcoin.
He is often regarded as the ‘Bitcoin millionaire’ who was so lucky to have won thirty-thousand units of Bitcoin in an auction. He is currently among the top individuals with the highest number of BTC tokens in his possession.
Draper was last seen urging the Bitcoin investors to keep intact their faith in Bitcoin. He also recommended they not let go of their Bitcoins only for the sake of making considerable profits.
He further advised investors to hold their Bitcoins for the longer term because the time for using Bitcoin as a hedge has come.
Nowadays, Draper has been on a self-initiated ‘cash diversification drive’ in which he has been voluntarily advising global investors. He has been encouraging global investors to pay attention to Bitcoin’s movement.
Amongst the investors’ quarters, Draper’s advice does hold high value as he is quite famous for predicting accurate Bitcoin predictions.
In 2014, he became instantly a millionaire when he won the Bitcoin auction which comprised over 30 thousand units.
Draper’s Note on How to Tackle ‘Cash Crunch’
Draper is also very certain that the cash crunch is an ongoing impact that is likely to escalate further very soon. The country is moving towards a financial crunch and recession fears are increasing every passing month.
He is of the view that a cash crunch can be avoided by adopting seven ways described by him in his note. He has asked the investors to ensure that they keep the seven ways in mind that are going to help them tremendously.
Draper acknowledges that the banking sector is once again in crisis as it had last seen in 2008. He insisted that at present contingency plans are desperately needed in the banking sector rather than any other sector.
He warned that acknowledging a bank’s failure would be rather more frequent than it is today. He strongly objected to the government’s strategies of printing excessive notes so as to bring in artificial stability.
In his note, Draper could be seen hundred-percent positive that excessive printing of money is the major cause of ‘rising inflation’.
He furthermore advised in his note that a ‘sound contingency plan’ is crucial for unexpected and ambiguous times.
Draper’s Argument Explained
Draper’s argument could be right because when Silicon Valley Bank collapsed, it struck tech startups as an ‘uncertainty’.
Since these startups were not used to ‘uncertainties’ hence they cannot do much but succumb to failure.
An Advice for the Investors
Draper claims that his ‘cash management plan’ is going to be highly efficient against the cash crunch. He claimed that his plan was collectively structured with the assistance of individuals from the famous Wharton School.
He claims that his plan is capable of diversifying the banking risks. He explained that businesses have to forget that they could rely on a singular bank for the management of their cash.
Instead, Draper advised that a business must ensure now that for the management of cash, at least two banks be taken on board.
Amongst them, one bank could be a local bank while the other must have to be a global bank, advised Draper.
Bitcoin as Hedge
He warned that time demands efficient management of cash and this efficiency can only be found outside the banks.
Draper encouraged Bitcoiners by assuring them that now is the perfect time for holding Bitcoins as a long-term strategy.
He insisted that storing currency digitally is a much better option than relying either on a local or global bank.
He then advised the investors to put a portion of their wealth into Bitcoin and wait for the moment to shine.