All the economists and investors should know that Bitcoin prices in India are quite higher than Bitcoin prices in other countries. Some people think that Bitcoin holds same universal value throughout the world, but that is not true. The value of Bitcoin keeps on changing for different countries. These prices vary particularly according to exchanges in the various countries.
Pricing of Bitcoin depends significantly on some factors like the volatility of the market, international prices and stock levels, aggregate demand as well as supply in India.
The reasons for difference in Indian and international price
Considering in the recent years, the Bitcoin prices whether being buying price or selling price, are being 5-10% more than that the global market. This condition arises when the demand of Bitcoin increases in India and the individual sellers/dealers refuse to sell them for cheap. There exist some other days also, when Bitcoin prices in India whether being buying price or selling price, remain lower than the international market. There is one important point to consider that in a global market sometimes there is a particular gap in pricing in between two countries, while some other times, the same difference generates in between exchange prices within a country.
One more thing to mention here is that difference between India’s buy and sell prices amplifies when prices become volatile. In another way, it is related to supply and demand relativity. As soon as prices get comparatively stable, stocks can be maintained properly, and in turn, the spread can be reduced.
The basic idea is that no central regulatory authority may get involved in defining the price of bitcoin. It’s fully a peer-to-peer system, and it is a definite point to be considered. Therefore, Price of Bitcoin primarily depends on “buyers’ and sellers’ favorability.”
That’s the cause of getting price difference in every country. This difference is not only among various countries but also among different exchanges within the same country.