Tim Draper: It's worth investing in at least two cryptocurrencies

American venture capitalist Tim Draper is urging entrepreneurs to prepare for the possible collapse of new banks as a result of government money printing and interest rate hikes.

Draper advises business owners to diversify their investments and have holdings in at least Bitcoin and one other altcoin.

Draper's call for asset diversification is in response to the uncertainty triggered by the collapse of Silicon Valley Bank (SVB). In a report to entrepreneurs, Draper argues that Bitcoin is a hedge against banking dominoes and excessive government intervention. He believes that businesses can no longer rely on any single bank or government agency to manage their money.

Draper advises that businesses should have at least two accounts with different banks, with a short deposit period of no more than six months. Additionally, the banks should be located in different jurisdictions, with one being local and the other international.

According to Draper, having different bank accounts and investments in various crypto assets is necessary because governments are now in control of banks, and they are at risk of becoming insolvent. Many startups have turned to him for help following the collapse of SVB and other banks, he claims.

Draper's advice underscores the importance of asset diversification in uncertain times. While it may not be possible to predict the future with certainty, taking steps to mitigate risk by diversifying investments can help businesses weather potential financial storms.

The collapse of Silicon Valley Bank has highlighted the potential risks of relying too heavily on any single financial institution or government agency. As a result, entrepreneurs are increasingly looking for alternative investment options that offer greater stability and security.

Bitcoin and other cryptocurrencies have emerged as potential hedges against financial instability and government intervention. While cryptocurrencies are still a relatively new asset class, their potential benefits in terms of diversification and risk mitigation cannot be ignored.

However, it is important to note that cryptocurrencies are still a highly volatile and speculative asset class, and investing in them carries significant risk. Entrepreneurs should carefully evaluate their risk tolerance and financial goals before making any investment decisions.

In addition to investing in cryptocurrencies, businesses may also consider other alternative assets, such as real estate or commodities, as a way to diversify their holdings and mitigate risk. By spreading their investments across different asset classes and jurisdictions, entrepreneurs can build a more resilient financial portfolio that can weather potential storms.

In conclusion, Tim Draper's advice to diversify investments in response to the potential collapse of new banks highlights the importance of risk mitigation and asset diversification in uncertain times. While cryptocurrencies may offer potential benefits in terms of diversification and risk mitigation, entrepreneurs should carefully evaluate their financial goals and risk tolerance before making any investment decisions. Ultimately, a diversified portfolio that includes multiple asset classes and jurisdictions can provide greater stability and security in the face of financial uncertainty.