The colour of Bitcoin (BTC 2.39%) could possibly be altering from orange to purple, white, and blue. That is as a result of Donald Trump has pledged that, if he turns into the following president, there will likely be a serious enhance in Bitcoin mining operations in the USA. In reality, Trump even went as far as to say that he needs all future Bitcoin to be mined within the U.S.

As a crypto investor, what is likely to be the perfect methods to revenue from that past simply investing in Bitcoin miners? Listed here are three cryptocurrencies that might profit.

Bitcoin

Bitcoin can be the obvious, no-brainer beneficiary of Trump’s assist. One knock towards this crypto has all the time been that Bitcoin mining is tremendously energy-inefficient. In September 2022, for instance, the Biden administration issued a prolonged research report (“Climate and Energy Implications of Crypto-Assets in the United States”) detailing all of the ways in which Bitcoin mining imposes important strains on America’s power grid.

So, on the very least, any kind of nationwide “Make Bitcoin Mining Great Again” initiative would take away one of many key obstacles to Bitcoin’s mainstream acceptance. Sure, environmental activists like Greenpeace will proceed to place out studies about “energy guzzling Bitcoin mines,” however extra U.S. states can be prone to embrace Bitcoin mining. That is very true for states with low-cost sources of renewable power, or states seeking to revitalize sure financial areas.

The massive query, in fact, is whether or not any new Trump initiative to assist home Bitcoin miners will even have any financial affect in any respect. In spite of everything, the Bitcoin mining trade is comparatively small, and if we’re solely speaking about new jobs added at Bitcoin mining firms, then the affect is likely to be negligible. Presently, there are roughly 60,000 folks employed throughout the U.S. crypto trade, however solely one-fifth of them are concerned with crypto mining.

Based mostly on what we all know from Trump’s discussions with Bitcoin miners, the most important focus seems to be the financial multiplier impact which may outcome from supporting the Bitcoin mining trade. For instance, that would come with jobs at renewable power firms and at firms serving to to replace America’s energy grid and power transmission traces. And, there has even been suggestion that supporting the Bitcoin mining trade may assist to offer a lift for America’s rising AI trade, given the large power wants of this trade as effectively.

Litecoin

Litecoin (LTC 2.24%), like Bitcoin, is a proof-of-work cryptocurrency, so it requires mining. It was created from the identical supply code as Bitcoin, so the 2 are related in nearly each regard. It too, has a halving occasion each 4 years, and identical to Bitcoin, Litecoin is supported by an ecosystem of miners. So it is not an excessive amount of of a stretch to claim that something that advantages Bitcoin mining additionally advantages Litecoin mining.

My solely caveat right here is that Litecoin appears to have fallen out of favor with traders. Whereas it nonetheless ranks among the many high 20 cryptocurrencies when it comes to market capitalization, it’s down 2% 12 months to this point whereas Bitcoin is up 55%. Of much more concern, Litecoin’s August 2023 halving didn’t result in a better price for the crypto.

On the plus aspect, nearly everybody agrees that Litecoin is a cryptocurrency and never a safety. Because of this, Litecoin has averted any main regulatory fights with the Securities and Change Fee. That regularity readability has opened the door for Litecoin to take part in monetary tasks that different high cryptocurrencies are excluded from. For instance, when a gaggle of Wall Avenue behemoths fashioned a brand new non-public buying and selling platform final 12 months to commerce simply 4 cryptocurrencies, Litecoin was one in every of them.

Dogecoin

You did not suppose I would point out Dogecoin (DOGE 5.55%) right here, did you? Effectively, the checklist of high proof-of-work cryptocurrencies is a relatively quick one, and Dogecoin ranks second, behind solely Bitcoin, when it comes to market cap. Furthermore, Dogecoin really made it into the White Home’s 2022 environmental overview of crypto-assets, so it too, would most likely profit from any broader nationwide dialogue in regards to the environmental affect of cryptocurrency mining.

Clearly, no matter Trump may resolve to do to encourage Bitcoin mining to occur domestically, it will not change the truth that Dogecoin is a meme coin with no apparent utility. Nevertheless, there’s one outlandish situation that might result in Dogecoin skyrocketing in price: Trump might resolve to develop into a public supporter of Dogecoin on social media in the identical method that Elon Musk has used X (previously Twitter) to put it up for sale.

Simply think about what would occur, for instance, if Trump ever says that he plans to make use of Dogecoin to scale back the nationwide debt. That idea may sound ludicrous at first, however Trump has already requested about the potential of Bitcoin serving to to pay down the nationwide debt. And Elon Musk has already floated the concept of utilizing Dogecoin to assist pay for future house missions. As America’s mountain of debt expands, we’ll want some inventive, outside-the-box considering. That may clarify why former Home Speaker Paul Ryan just lately penned an op-ed for the Wall Avenue Journal on how crypto might stave off a U.S. debt disaster.

That being stated, I’ve no plans to put money into Dogecoin any time quickly. Whereas I can see a short-term case for getting the meme coin, its long-term case is way much less spectacular. Dogecoin has been round for 10 years, and has by no means as soon as damaged by means of the $1 mark.

Be cautious of the Bitcoin flip-flop

As a rule of thumb, traders shouldn’t make any monetary choices based mostly on candidates’ marketing campaign guarantees. Keep in mind — just some years in the past, Trump was adamantly anti-crypto and anti-Bitcoin. So he is already performed one flip-flop on Bitcoin. What if he decides, after he is received the election (in fact, election end result relying), that Bitcoin mining is just not what he thought it was?

With that in thoughts, the one crypto from this checklist that I am investing in is Bitcoin. The regulatory and political surroundings seems to be shifting in its favor, and Trump’s new assist of Bitcoin mining is simply extra proof of this. That is the macro, long-term pattern that I am targeted on now, and it is one of many the explanation why I am so bullish on Bitcoin’s development prospects.