The craze for cryptocurrency is spreading rapidly.
But in some cases, investors might find more luck with indirect crypto games than the currencies themselves, two traders told CNBC on Tuesday.
“In this case – the mining rush – it’s better to sell the pickaxes and shovels than necessarily opt for the mined asset,” said Chantico Global founder and CEO Gina Sanchez. “Trading Nation”.
PayPal, for its part, will make “extraordinary costs” on Venmo’s move, said Sanchez, also chief market strategist at Lido Advisors.
“We have PayPal in our wallet [at Lido Advisors]. We also own other chip names like Nvidia and Intel“, did she say.” You need two things to mine bitcoin: you need very powerful computers, and you need electricity. Electricity is harder to play, but the chip shortage is easier. “
As companies embrace digital assets, companies that help facilitate crypto transactions could also win out, Strategic Wealth Partners President and CEO Mark Tepper said in the same interview.
“Silvergate a bank … that works with all the crypto companies. Venmo allows its users to access crypto through Paxos, which happens to be a Silvergate client. So Silvergate is going to benefit from this whole deal with Venmo, ”Tepper said.
“I really love them as a play and I think they’re really going to benefit tremendously from what Venmo is doing,” he said.
As for bitcoin itself, more hype will likely lead to higher prices, Tepper said.
“What’s really going to drive bitcoin up is more and more adoption,” he said. “If Amazon were to suddenly accept bitcoin payments, I think bitcoin would hit over 100,000 overnight. So, yes, the more you see companies embracing it and adopting it, I think the bitcoin is increasing. “
Disclosure: Lido Advisors owns shares of Nvidia and PayPal. Tepper owns shares of Silvergate Capital.