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Digital assets like Bitcoin may be poised for big growth under the Trump administration, and Wall Street maverick Nvidia (NVDA) is well-positioned to benefit.
“I think there are many ways governments can show support for cryptocurrencies in the coming months,” EMJ Capital founder Eric Jackson said on Yahoo Finance Executive Editor Brian Sozzi’s Opening Bid Podcast. (video above, listen below). “President Trump’s talk of strategically preparing for Bitcoin is bullish as a potential bid for Bitcoin,” Jackson said.
As a result, Bitcoin’s post-Election Day bull market intensified, topping $80,000 for the first time on Sunday. According to data from Yahoo Finance, the price of Bitcoin has increased by 15% in the past five days.
During the campaign, Trump didn’t shy away from expressing his enthusiasm for digital assets. He predicted at this year’s Bitcoin 2024 conference that the US could become the “crypto capital of the planet” and even promised to make the country a crypto-friendly place.
The president-elect specifically touted his desire to make the country a Bitcoin “superpower.”
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Enter AI chip darling Nvidia, one of the original Bitcoin mining projects.
Jackson has been watching Nvidia and its evolution for the past seven years or so. Nvidia’s powerful chips made it famous in gaming, but its products also played a key role in the development of early cryptocurrencies.
The company’s graphics processing units (GPUs) are used to aid cryptocurrency miners due to their speed and efficiency. Orders for Nvidia’s latest computing chips, along with applications for AI and Tesla (TSLA) robots, could also increase as demand for cryptocurrencies could increase under the Trump administration.
“If cryptocurrencies take another step forward, Bitcoin mining itself will probably come back,” Jackson said.
Jackson believes NVIDIA’s stock could more than double, given its broader competitive advantage in chip development over rivals AMD (AMD) and Intel (INTC). This is a bullish view echoed by Jackson’s colleagues at Bank of America and other institutions.
“Cryptocurrency is emerging as this alternative currency class,” Jackson added.
One of the challenges is to bring currency to the masses in a tangible and understandable way.
Jackson envisions support for the digital currency industry under the Trump administration, which could include “facilitating the approval of all types of ETFs.”
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