The way that Bitcoin has swept across the planet means that people from many countries are keeping a close eye on how much it would cost to buy Bitcoin. Yet, this price can vary from one place to another.
When it comes to the future Bitcoin price in India, there are some important factors to bear in mind.
The Confusing Legal Situation
At the heart of the current uncertainty is the debate over the legal situation regarding Bitcoin and other cryptocurrencies in India. At the start of 2018, the government said that it was going to stop digital currencies from being part of the nation’s banking system.
– What this means is that currently the coins can still be legally owned- However, you can’t use them to pay for anything- The Bitcoin exchanges in India have also been stopped from using national banks
At the time of writing, an appeal is being heard in the Indian courts. Exchange operators want the ban to be lifted, while the Reserve Bank of India is determined to see it maintained.
What Does This Mean for the Bitcoin Price in India?
Bitcoin has always been popular in India. Before this ban was put in the place, high level of trading volumes were seen across the country. The impressive level of demand for Bitcoin means that India has typically been regarded as an expensive place to buy these coins.
Since the start of 2018, the Bitcoin market in this country has been seriously affected. What does this mean for the Bitcoin price in India?
– One issue is that people are allegedly turning to illegal exchanges to buy these coins- As well as the lack of security that this implies, there is also the risk of paying more than the official price too- Levels of demand on legal exchanges are lower, due to the uncertainty
What Does the Future Hold?
It is clear that the Bitcoin price in India is going to be greatly affected by the court decision that is expected soon. On the one hand, if legal crypto exchanges are given the green light then it should signal a return to normality.
In this case, we can expect a huge flood of new buyers, pushing the price up. You can see from our review of eToro and our look at Binance that some of the biggest, most reputable names in the business are present here.
Alternatively, if the ban is upheld, then it is going to be more difficult – although not impossible – for Indian investors to get hold of the Bitcoin that they crave. With restrictions placed on the authorised, legal exchanges, there may not be enough demand to drive a genuine price increase.
It is also worth bearing in mind the influence of India in the global digital currencies market. This is the second most populated country on the planet. If Indians can freely buy Bitcoin from reputable exchanges then the massive demand should act to push up the Bitcoin price all around the world.