In a large pot or Dutch oven, cook the bacon over medium heat until browned and crispy. Once cooked, remove the bacon and set aside, leaving the drippings in the pot.
In the same pot, add the diced onion and bell pepper to the bacon fat. Sauté until the vegetables are softened, about 5 minutes. Add minced garlic and cook for an additional minute until fragrant.
Add the ground beef to the pot, breaking it up with a spoon. Cook until browned, draining any excess fat. Season with chili powder, cumin, smoked paprika, cayenne pepper, salt, and pepper.
Stir in the fire-roasted diced tomatoes, kidney beans, black beans, and beef broth (or beer). Bring the mixture to a boil, then reduce heat to low and simmer uncovered for at least 30 minutes, allowing the flavors to meld together.
While the chili simmers, crumble the reserved bacon and stir it back into the pot for added flavor. Taste and adjust seasoning if needed.
Serve hot with your choice of toppings such as shredded cheese, sour cream, green onions, or jalapeños.