The prices of Bitcoin in India is continuously rising. Bitcoin prices witnessed a massive surge on Indian Bitcoin exchanges, where prices were as high as upto Rs 2,35,000, which is equivalent to around $3615. (1 US$= Rs 65)
Bitcoin is really hot in India these days.Currently, Bitcoin is fetching more returns than Bank Fixed Deposits’s , Provident Funds, Stock Markets, and various other financial instruments. On 28 April, price of One Bitcoin was Rs 88,000. In just a month, the prices grew upto Rs 2,25,000 fetching around 140 percent. This has attracted new people to the market. Investors have got a new option to look for.
Zebpay, one of the leading Bitcoin Exchnage in India recently mentioned it has touched the level of 5 lakh downloads of it’s mobile app. Thousand of new users are downloading and registering on the exchange everyday. This has caused exchanges to charge more premium due to rising demand. Also, no one is interested in selling their Bitcoins and thus the Bid-Ask spread has also at one time crossed Rs 15,000 ($230). International users looking for arbitrage options cannot benefit from the price difference due to capital controls and foreign exchange regulations in India.
Rising demand have not only raised the prices of Bitcoins but also has lead to downtime and slow processing of transactions.
Recently, Zebpay introduced a daily limit of Rs. 50,000 ($670) on Bitcoin purchases. The limit is only for temporary basis.
Zebpay tweeted:
“Dear user, we have put temporary buy limits of Rs 50,000 per day due to the shortage of Bitcoin stocks. These limits are temporary and will be revised as market conditions change.”
Zebpay also warned users to invest safely in Bitcoins as it’s prices are highly volatile.
Zebpay tweeted “Bitcoin prices are very volatile right now. Please use caution when investing. This is a new technology innovation on a global but early stage. Your investment should match your knowledge. Be safe!”
One interesting case study came in after Zebpay reached the significant 5,00,000 user base. India is the 13thlargest Bitcoin exchange market in the world. On the other hand Korea, is the Fourth largest Bitcoin Exchange market. But an exciting fact that was recently noticed was Zebpay has more number of users than the combined number of Korea’s three largest mobile exchange.
When compared with Zebpay, it is just 20 percent of what Zebpay has.
This fact clearly indicates that though the trading volume of Bitcoin in India may be low, but clearly India has more number of interested users in Bitcoin.
Coinsecure, another Indian Bitcoin Exchange which has around 10,000 downloads of it’s mobile Android mobile app was down, due to the exponential rise of user-base causing stress on the Exchnage’s systems. The Exchange displays the following message on it’s website:
As Bitcoin popularity and demand is rising day by day in India, government is also taking Bitcoin seriously. The Indian Government had established a committee to review Virtiual currencies such as Bitcoin in the month of March. Based on the results, government will take necessary actions regarding the legality of Bitcoin in India.
Recently, the Indian Government also asked it’s citizen to provide their views on virtual currencies like Bitcoin. Citizens were also asked to provide some feedback on the some questions asked by government related to regulation of Bitcoin. Click here to read full article mentioning all the detail along with some expected tax implications on Bitcoin in India.
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