What are the Reasons Behind the Increasing Bitcoin Prices in India? PCEX Member
By Peter Jack on The Capital
The crypto market in India has widened after the Supreme Court of India struck down the banking ban on Cryptocurrencies which was imposed by Reserve Bank of India (RBI). Bitcoins, the high traded cryptocurrency, has surged its prices since the beginning. The crypto market has experienced a boom since it has come. It may seem hard to believe that a decentralized digital currency could be worth in lakhs. Although the lines and codes through which BTC are mined are worthless, the price of one BTC is 8,48,680.48 INR. It has gained a significant place in the investment industry because the transaction costs are much lower than credit cards.
Bitcoins hold a universal value is a contradictory statement because its price in INR is different from its prices in USD. The reason behind the price fluctuations depends on the laws of supply and demand. This simply means that the price of BTC would be determined only by the amount the market is willing to pay for it which means if more people are interested in buying BTC, the demand increases so as the price. On the other hand, if people want to sell BTC, the price will decrease.
FACTORS DETERMINING BITCOIN PRICES IN INDIA
Bitcoin Prices in INR are higher for both buying and selling because the demand for BTC in India is higher than what is perceived in the global market. Its prices vary across different exchanges internationally also. In India, the sellers are not willing to sell bitcoin at a lower rate, which is why the selling rate is also higher.
The nature of Indian currency (INR) is also another reason why BTC prices are higher. There are several limitations, regulations, and charges that are put for transactions taking place within and across the country. Its prices depend on a multitude of factors like market size, and nature, along with the exchange volume and price paid for entry into the BTC market. Bitcoin is a fast, borderless, and decentralized cryptocurrency due to which more and more people invest in it to gain profits.
Traders buy BTC today to sell it in the future when the prices go up. Its prices also vary across the different exchange portals due to fees levied on the transaction process. Bitcoin Prices in INR will be something on WazirX which charges 0.2% on the transaction will be different on other exchange platforms which charge 0.1% like CoinDCX or no fees on transactions like PCEX Member.
Apart from the transaction fees, the number of traders active on the coin trade platform for BTC transactions also plays an important role in determining its price in the Indian market. Many coin trade platforms in India also determine the upper and lower limit based on which the seller can set the selling rate on which they are willing to sell bitcoins.
Exchanges internal policies, long-term plans, and factors like taxes, margin, and the market nature of the country, based on which these exchanges operate also play an important role in determining its price. For instance, the Bitcoin prices in INR have surged and will continue to increase due to its growing demand.
BENEFITS FROM BITCOINS
The Bitcoins have proved to be an asset for most people. Many people rely on BTC as a source of income. Due to global establishments like crypto exchanges, brokers, trading platforms, Bitcoins are considered as one of the most liquid assets in the financial market. Investors and traders can easily trade BTC because of their lower fees and decentralized nature. The high market demand for Bitcoin guarantees a good return for holders, traders, and investors. Bitcoin trading is a minimalistic form of investment as investors simply buy or sell BTC from crypto exchanges and store them in their digital wallets.
The crypto exchanges in India provide a unique crypto pair which is BTC/INR or Bitcoins in exchange for Indian rupee which means the traders can buy and sell Bitcoins in INR. In this way, the income of investors is guaranteed in terms of Indian currency. With innumerable gains from bitcoin trading, people tend to invest by opening a business or a startup, which leads to an increase in the economic growth of the country. The profit from bitcoins is ultimately adding to Indian GDP.