Bitcoin prices continued to surge yesterday, reaching another new high of $1481.73. Newbie investors are easily attracted to an asset class, which continues to rise vertically. However, new investors are confused whether to invest in bitcoin or trade it speculatively.

In this article, we highlight two differing viewpoints of successful investors.

Aussie billionaire compares bitcoin investment to horse racing

Sydney-based billionaire Cannon-Brookes, who is the co-founder and co-CEO of software firm Atlassian, said in end-April that he has invested in bitcoin, which is paying out well. However, his bitcoin bet was similar to the one people place in horse racing. His tweet said:

Yup, my BTC bet is paying out well. Theory? “It will be worth a lot, or zero”. Much like a horse racing. Not like investing. https://t.co/VrGz6JzWoQ — Mike Cannon-Brookes (@mcannonbrookes) April 30, 2017

Cannon-Brookes has not provided any details of the amount or the timing of his investment. However, if he had invested a few years back, he would be sitting on phenomenal returns by now.

Now, let’s look at the other billionaire who is an investor and not a speculator in bitcoin

Billionaire investor Mike Novogratz, a former hedge fund manager at Fortress Investment Group and a Goldman Sachs partner, while speaking at the Harvard Business School Club of New York said that he was holding 10% of his net worth in digital currencies. He also called it: “The best investment of my life.”

In order to diversify his investment, Novogratz also invested in Ethereum when its value was $1. Yesterday, Ethereum closed at $82. That’s a huge gain within a matter of a few years.

He expects bitcoin to reach $2000 levels, however, he also said in his talk that there could be a bubble developing in the digital currencies.

Though the above-mentioned returns of the billionaire investors are mind boggling, traders must remember that they are early investors. To expect similar returns from this point on can be dangerous.

After the recent run-up, traders who own the cryptocurrencies should look to book part profits and hold the rest with suitable stop losses.

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