Is the price of Bitcoin higher in India?

By May 25, 2021June 25th, 2021No Comments
Is the price of Bitcoin higher in India_

Cryptocurrencies are now used by millions of people all over the world as an investment and trading instrument. Crypto transaction volumes are now ever increasing in India, where 8 million investors already possess 100 billion rupees ($1.4 billion) in crypto assets, with new registrations up 30 times from a year ago. Bitcoin is already being embraced as a mainstream investment class and as a new digital gold by millennials, who have seen returns of 300 percent or more.

What is the price of Bitcoin in India?

Bitcoin, the first cryptocurrency to be established, was created by an anonymous developer known only as ‘Satoshi Nakamoto’ on the internet, who has become a godlike figure in the crypto sector. In India, Bitcoin has almost always traded at a premium – often for 5-10% higher than its global price. The BTC to INR rate as of May 2021, is ₹28 lakhs. 

Why is that?

Bitcoin prices being high in India, and why

For the longest time, Bitcoin’s price in India has been high compared to other countries. Both buy and sell Bitcoin prices in India are more significant than the international market at this time. 

Bitcoin prices vary significantly between exchanges in various countries. When there is a significant demand for BTC in any market, including in India, this situation frequently arises.

This is primarily since Bitcoin demand in India is far more significant than in the worldwide market. Bitcoin values differ from exchange to exchange and even from country to country. Because there aren’t enough sellers willing to sell at a lower price in India, the price of Bitcoin decided on Indian exchanges is much higher than the other players in the market. As a result, the only option is to raise the selling price until sellers are willing to sell their Bitcoins or maintain the buying price very high to let demand be fulfilled for some buyers, not for all.

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Reasons why the price of Bitcoin and other cryptocurrencies is high globally

Let us understand exactly why the prices of Bitcoin and other cryptocurrencies are high globally.

Instituitional Adoption

Cryptocurrencies, particularly Bitcoin, are now being regarded as a safe-haven asset against market instability and inflation. People are holding less cash and staying hedged against market volatility because of the current socio-cultural and economic climate. 

There has been a recent trend among public businesses to convert their cash treasuries to cryptocurrencies. Square, a payments corporation based in the United States, purchased $50 million worth of Bitcoins. Following this, Microstrategy, a publicly-traded firm in the United States, transferred $425 million in cash reserves to Bitcoin, believing it to be a more reliable store of value. 

Digital currencies and Paypal

Paypal, a multinational digital payments business, said in October 2020 that it would add cryptocurrency buying and selling capabilities to its platform. Bitcoin, Bitcoin Cash, Ethereum, and Litecoin were among the four major currencies that were launched. Paypal has also stated that it intends to support cryptocurrency transactions.

Paypal was one of the early skeptics of Bitcoin as a long-term investment. Now Paypal is one of the most prominent players who is now joining the bandwagon. Demand for the asset class has increased as a result of this and the support of others and PayPal.

Apart from Paypal, the corporation also controls Venmo, a famous payment network introducing crypto to an additional 40 million customers. While these sites are new to crypto, others are already expanding the reach of crypto payments.

Many countries are attempting to regulate the crypto sector as several private investors seek to utilize Bitcoin as a means of exchange. Many countries, including Japan, the United States, and Germany, have embraced Bitcoin and other cryptocurrencies.

Scarcity Driven by Bitcoin Halving

It is widely known that most cryptocurrencies have a finite supply. One of these is Bitcoin. The third Bitcoin halving took place this year. The Bitcoin halvening is a significant event in the Bitcoin network that occurs every four years. It also increases the stock-to-flow ratio making it highly scarce. One of the most important variables influencing Bitcoin’s price is halving. 

Since there are only 21 million Bitcoins, the market currency circulates less as the reward drops. As more individuals become aware of the asset’s scarcity, demand increases, driving up the price. Bitcoin’s price fluctuation may impact other currencies because it controls more than half of the market capitalization.ever-increasing

Conclusion

Bitcoin, Ethereum, Ripple, and other cryptocurrencies are likely to continue to be a part of our lives in the future, whether as money, investment options, commodities, assets, or in some other form. While the crypto sector is still trying to establish itself in India, demand massively exists, which explains the reasons stated in the article for the high price of Bitcoin in the country.

Further Reading:

How to sell bitcoin in India?

How to buy Bitcoin in India?

What is the difference between a token and a Bitcoin?

Are Tether and Bitcoin related? How Tether affects Bitcoin?

6 Things to Consider Before Investing in Bitcoin

What are the Differences Between Bitcoin and Ripple?

6 Bitcoin Myths That You Should Stop Believing

What is Bitcoin Mining?

Bitcoin Wallets: The Definitive Guide

What is Litecoin (LTC)? Hows is it Different from Bitcoin?

Why do Bitcoins Have Value?

What are the Differences Between Peer-to-Peer and Regular Bitcoin Exchanges?

Why are Bitcoins More Popular?

6 Tips to Keep Your Bitcoin Wallet Safe

5 Ways to Keep Bitcoin Transactions Private

What Will Happen when all Bitcoins are Mined?

Bitcoins in India: Challenges and Opportunities Ahead

Does Bitcoin have a volatile nature? Why?

Can Bitcoin Replace Credit Cards?

Is Bitcoin Digital Gold?

Why Start-ups Should Consider Using Bitcoins?

What is Bitcoin halving? Why is it important for cryptocurrency investors?

Can you buy shares in Bitcoin?

What is the difference between a token and a Bitcoin?

Are Tether and Bitcoin related? How Tether affects Bitcoin?

Why WazirX is the best bitcoin trading platform in India

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