Bitcoin: it’s electric.
Well, indirectly, anyway. Electricity consumption domestically and around the world is rising on bitcoin mining fervor, according to media reports citing Digiconomist data on bitcoin-related energy consumption.
Investors can capitalize on the surge in electricity consumption by way of bitcoin mining through buying several names in the energy and power space, according to macroeconomic strategist and Bear Traps Report publisher Larry McDonald. Here are his reasons why, and his recommendations to investors.
• Bitcoin is incredibly volatile as an asset and investors are looking to more conservative, long-term ways to play the bitcoin trend than buying the cryptocurrency outright. Through the act of bitcoin mining, electricity is being consumed at a rapid clip.
• A liquefied natural gas company, Cheniere Energy (LNG), would also be a smart play here.
Bottom line: As bitcoin mining consumes more electricity, some energy-related exchange-traded funds are worth a buy, according to McDonald.
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