Fluctuation in the Bitcoin prices on the Bitcoin exchanges is caused due to a lot of factors. There are a lot more factors that determine the Bitcoin prices like the international prices, overall demand and supply in India and so on. Today in this article we will give you top two reasons as to why Indian Bitcoin prices are higher than international prices:
1) Since Indian prices mostly both buy and sell prices, thus they tend to be higher than the international prices in the market. Thus prices tend to vary significantly between exchanges in different countries. This scenario generally arises when there is a high demand for Bitcoins in India. Also, the sellers refuse to sell at cheap. Similarly, there are scenarios when the Indian price is lower than the international price.
2)Secondly, if the Indian prices are higher than the international prices then this does not lead to fleecing the users. Probably in India, there are hardly any sellers of Bitcoin so due to this reason the prices are increased on a daily basis until there is an appropriate seller for it. In such a case the buy price is kept very high in order to discourage the buyers from the task to buy Bitcoins. This is probably done to make sure that they have enough stock to sell in the market.
Thus such type of differences is found so as to maintain the balance between the buy and sell demand. Hence these reasons clearly justify why Indian Bitcoin prices are higher than the international prices.
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Various factors determine the Bitcoin prices like The cost of producing a bitcoin through the mining process, the international prices, regulations governing its sale, overall demand and supply in India.
In India, there are hardly any sellers of Bitcoin so due to this reason the prices are increased on a daily basis, until there is an appropriate seller for it.