The recent banking crisis in the US appears to have shaken some customers’ faith in the old banking system. According to Federal Reserve data, customers withdrew nearly $100 billion in deposits in the week ending March 15th.
Tim Draper, an American venture capital investor and entrepreneur, said in a March 25 report that “the founders should consider a more diversified approach to cash management” due to over-regulation by banks and micro-management by the government. As part of the emergency plan, Draper suggested that companies hold “at least 6 months of short-term cash in each of two banks, a local bank and a global bank, and at least two payroll cash in () or other cryptocurrencies.”
Daily view of cryptocurrency market data. Source: Coin360 The shift from traditional banking to cryptocurrency may already be underway, as evidenced by Bitcoin’s strong performance in recent days. Even after the recent rally, investors don’t seem to be in a rush to lock in profits on Bitcoin. However, the same cannot be said for most cryptocurrencies, as they have only seen a slight decline.
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