Given the current Bitcoin volatility, one would expect the premium rates for cryptocurrency to go down in certain countries.China is still paying a higher price than the rest of the world, but they are not the only ones. In fact, India remains quite bullish on Bitcoin, and there is still a 10% premium to be paid. Quite an intriguing development, although it remains to be seen how this situation will change over time.
India’s Bitcoin Premium Remains Intact, For Now
India is one of those countries where Bitcoin is designed to make somewhat of an impact over the next few years. The financial situation in the country has taken a turn for the worse when the banknote swap was introduced a few months ago. Most of the issues associated with this process have not been resolved just yet, and Bitcoin provides a viable alternative.
As far as reasons go for this maintained premium price, it’s hard to tell why this is happening. Bitcoin trading continues to grow in India, both across centralised exchanges as well as the LocalBitcoins platform.The upper class in India does not seem bothered about the rest of the population being affected by the banknote ban. It is possible the upper class is driving Bitcoin demand in India, although that would be rather surprising.
It is still not legal to use Bitcoin in India, but it is not illegal to do so either. Various companies deal with cryptocurrency payments right now, and this number is expected to increase over the coming years. However, the mindset of most Indians is how tools lIke Bitcoin should not be used unless they are officially deemed legal. Cultural differences can affect Bitcoin adoption in different ways.
That being said, it is doubtful Bitcoin will ever be given legal status in India. If that were to happen, however, Bitcoin would be catapulted to one of the main global assets in the world. For now, the Indian government does not seem keen on legalising Bitcoin, especially considering how the banknotes swap has not been completed just yet. The financial situation in India remains very tense for the time being, which creates a golden opportunity for Bitcoin in its own right.
One could argue the Indian population is enjoying the recent Bitcoin price dip. A lot of coins have been brought into circulation again for traders to buy up at low prices. Then again, the “unknown” factor of who the future may hold for Bitcoin in China has caught the market off-guard. It is good to see these premium values remain intact, even when the price is much lower than a few weeks ago.
Header image courtesy of Shutterstock
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube