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To bake: Preheat the oven the to 375°. Line a rimmed baking sheet with foil. Place an oven-safe rack over the baking sheet.
Cut shallow, diagonal slits into each hot dog about 1 inch apart. Wrap one piece of bacon around each hot dog and secure the bacon with a wooden pick at each end. Sprinkle both sides of the bacon-wrapped hot dog with garlic powder and chili powder, if you like.
Place the hot dogs on the rack and bake until the bacon is crispy, 20 to 25 minutes, turning them over halfway through the baking time.
To grill: Proceed with step 2 as directed. Preheat the grill to medium heat (350 to 375°). Place the bacon-wrapped hot dogs on grill grates and grill, turning occasionally, until bacon is crisp, 8 to 10 minutes.
Add the bacon wrapped hot dogs to the buns with jalapeño, red onion, ketchup, and mustard. Serve with potato chips.