Fortress’s Novogratz says bitcoin is in ‘inning 3 of a 9 inning game’

Michael Novogratz, principal and director of Fortress Investment Group LLC FIG -1.54% , says bitcoin is just heating up.

He made headlines after praising the virtual currency at a conference in late October, adding that he had bought bitcoins a few months before, according to reports. His remarks came as bitcoin pushed above $200 on the trading exchange Mt. Gox. Bitcoin has since made a run on $400, fetching $372.30 Monday morning on Mt. Gox. Bitcoin has a fixed supply and is created through a cryptographic process called mining.

When asked about the rise in bitcoin prices, Novogratz said in emailed comments to MarketWatch:

More and more people are getting involved…. There is a fixed supply… prices are going higher…. Inning 3 of a 9 inning game…

BloombergMichael Novogratz of Fortress has amassed a bitcoin position.
Novogratz, who is the co-chief investment officer of the Fortress Macro Fund and the Drawbridge Global Macro Fund, has joined a slew of high-profile investors who have expressed interest in the virtual currency at a time when it has shed some of its questionable associations. Federal authorities seized the online drug market Silk Road, which only accepted bitcoins, in October and arrested its alleged owner.

Early Facebook FB -1.52% investor Jim Breyer recently helped raise $9 million in Series A funding for the company Circle, which aims to simplify bitcoin payments.

Ebay EBAY -0.50% president and chief executive John Donahoe told the Financial Times earlier this month that the company is monitoring bitcoin and could possibly incorporate it into PayPal in the future.

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