Billionaire Tim Draper Urging Entrepreneurs to Consider Bitcoin Investment
Renowned venture capital investor and billionaire Tim Draper has been urging entrepreneurs to consider Bitcoin Investment to protect themselves from the risks of traditional financial systems.
With the collapse of Silicon Valley Bank (SVB) and the continuous printing of money and swinging
interest rates by governments, Draper warns of “more and more” bank failures.
In response, he recommends diversification strategies, including holding at least two paychecks of money in Bitcoin or alternative cryptocurrencies.
The Transformative Power of Technology
Draper’s investment strategies and recommendations come from his deep understanding of the transformative power of technology.
He is known for his early investments in technology companies such as Skype, Hotmail, Tesla, and Baidu.
Draper is also a proponent of cryptocurrencies and blockchain technology, having invested in digital currencies and blockchain-related start-ups.
The Insurance Against Bank Runs and Excessive Government Intervention
In a recent report aimed at entrepreneurs, Draper argues that Bitcoin is insurance against bank runs and excessive government intervention.
Some tips for business cash management post SVB. https://t.co/dVEw0EJJyZ #bitcoin #trust #freedom
— Tim Draper (@TimDraper) March 24, 2023
Companies cannot rely on a single bank or regulatory body to keep their money safe, he says.
As a precautionary measure, Draper advises business owners to hold at least six months’ worth of short-term cash in two separate bank accounts – one with a local bank and another with an international bank.
MicroStrategy Buys More Bitcoin
Following Draper’s advice, MicroStrategy, co-founded and formerly headed by Michael Saylor, has bought another 6,455 bitcoins for $150 million.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
Saylor, who is still the company’s chairman, personally announced the purchase on Twitter. MicroStrategy bought the bitcoins for an average price of $23,238 each.
El Salvador Continues its Bitcoin Investment
Similarly, the small nation of El Salvador has faced criticism for choosing to move to a Bitcoin standard.
However, the country is pressing on with its plans to use Bitcoin as legal tender, with President Nayib Bukele recently announcing a bill to remove all taxes on technological innovation.
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.
— Nayib Bukele (@nayibbukele) March 24, 2023
The move is aimed at encouraging tech companies to establish themselves in the country and prepare for the digital age.
Conclusion
In today’s world, traditional financial systems are under threat, and the global economy is undergoing significant changes.
Entrepreneurs and companies must be prepared to adapt and diversify their investments to protect themselves from potential risks.
Billionaire Tim Draper’s advice to invest in Bitcoin and other cryptocurrencies is an important consideration for entrepreneurs.
With the recent success of MicroStrategy’s investments and El Salvador’s ongoing Bitcoin experiment, the potential of digital currencies and blockchain technology is becoming more evident.
As such, entrepreneurs should consider the benefits of Bitcoin investment to protect themselves from the potential risks of traditional financial systems.
