The madness of cryptocurrencies is fast becoming mainstream.
PayPal Venmo’s on-the-peer payment service has begun to allow users to buy, sell and own bitcoin, ethereum, litecoin and bitcoin cash, the next step in PayPal’s foray into digital assets.
But in some cases, investors may find more luck with indirect cryptocurrencies than coins themselves, two traders told CNBC on Tuesday.
“In this case – the rush to mining – it’s better to sell pawns and shovels than to go to the mining asset,” Chantico Global founder and CEO Gina Sanchez told Trading Nation.
PayPal, for one, will make “extraordinary commissions” from Venmo’s move, said Sanchez, also chief market strategist at Lido Advisors.
“We have PayPal in our portfolio [at Lido Advisors]. We also have other chip names, such as Nvidia and Intel, “she said.” You need two things to get bitcoin: you need very powerful computers and you need electricity. Electricity is harder to play, but the lack of chips is easier. “
As companies embrace digital assets, companies that facilitate cryptocurrency transactions could also win, said Strategic Wealth Partners President and CEO Mark Tepper in the same interview.
“Silvergate is a bank … that works with all the crypto companies out there. Venmo allows users to access crypto through Paxos, which happens to be a Silvergate customer. So Silvergate will benefit from this whole Venmo deal,” he said. Tepper.
“I really like it as a play and I think they will actually benefit a lot from what Venmo does,” he said.
As for bitcoin itself, more hype is likely to bring higher prices, Tepper said.
“What will really drive bitcoin higher is the adoption of more and more,” he said. “If Amazon suddenly accepted payments in bitcoin, I think bitcoin would go to over 100,000 overnight. So, yes, the more companies you see adopting and embracing it, I think bitcoin will grow.”
Disclosure: Lido Advisors owns shares of Nvidia and PayPal. Tepper holds shares in Silvergate Capital.
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