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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.
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:
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
Bitcoin Wallets: The Definitive Guide
What is Litecoin (LTC)? Hows is it Different from Bitcoin?
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?
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
Disclaimer:
The price prediction is based on data collected from various sources. This is not an investment advice. Crypto investing is high risk activity, and User should do their own research, including obtaining appropriate professional advice before taking any investment decision.
Frequently Asked Questions
How Many Bitcoins Will Ever Be Created?
The source code of Bitcoin stipulates that it must have a restricted and finite quantity. As a result, only 21 million Bitcoins will ever be generated. These Bitcoins are added to the Bitcoin supply at a predetermined rate of one block every ten minutes on average. The supply of Bitcoins will be depleted once miners have unlocked this number of Bitcoins. It's possible, however, that the protocol for Bitcoin will be altered to allow for a higher supply.
Is Bitcoin Legal In India?
In India, Bitcoin is not illegal. Because of cryptocurrency's rapid evolution, policymakers and regulators seemed to have recognized the chance to accept the new technology early. From the infamous 'RBI ban' in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to develop, India has seen its fair share of ups and downs when it comes to Bitcoin regulation. Last year, the Supreme Court Of India approved the use of Bitcoin throughout the country. According to the Supreme Court, the existence of Bitcoin or any other cryptocurrency is unregulated but not unlawful.
How To Convert Bitcoin To Cash?
There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.
How Bitcoin Mining Works?
Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."
How Many Bitcoins Are There?
There are 18,730,931.25 Bitcoins in circulation as of June 2021. The total number of Bitcoins that would ever be there is just 21 million. On average, 144 blocks are mined every day, with 6.25 Bitcoins per block. The average number of new Bitcoins mined every day is 900, calculated by multiplying 144 by 6.25.
How Does Bitcoin Technology Work?
The blockchain is the foundation of Bitcoin. It is a decentralized, distributed ledger that tracks the provenance of digital assets. The data on a blockchain can't be changed by design, making it a real disruptor in industries like payments, cybersecurity, and healthcare.
Is Bitcoin Mining Free?
Bitcoin mining isn't free, but it can be tried on a budget. Bitcoin mining is an essential part of the blockchain ledger's upkeep and development and the act of issuing new Bitcoins. It is accomplished by the use of cutting-edge computers that tackle complicated computational arithmetic problems. The effort of auditor miners is rewarded. They're in charge of ensuring that Bitcoin transactions go off without a fuss and that they're legal.
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
How Much Is 1 Bitcoin Worth Today?
Check out the current price of Bitcoin on the WazirX exchange. Bitcoin's value is primarily determined by its supply and demand in the market. Other elements have an impact on its worth. Its intrinsic value can also be calculated by calculating the average marginal cost of producing a Bitcoin at any given time, based on the block reward, electricity price, mining hardware energy efficiency, and mining difficulty.
What Is Bitcoin Used For?
Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
