Currently, the bitcoin price is $19,000, as a Google search at the time of writing. ZebPay shows that the Bitcoin price in India is Rs. 15,49,900. Bitcoin prices vary on different crypto exchanges as well. So why is there a difference in Bitcoin prices? Is there a difference between the INR and USD value of Bitcoin? These are some of the questions that one would ponder. This article will explain why there is a difference in Bitcoin prices.
No Standard Pricing
The primary reason for the discrepancies in Bitcoin prices is that there is no global or standard Bitcoin price. Bitcoin is a decentralized digital token. Bitcoin is not linked or pegged to the USD or any other fiat currency. It is also not linked to a particular exchange or country. Like all other commodities, supply and demand vary depending on the market and time.
Average estimate prices
How can crypto investors be sure that a price tracker, an exchange, or even Google can accurately predict Bitcoin prices? The short answer is that Bitcoin prices will not be 100% accurate. This difference is because Bitcoin price depends on either a recently traded Bitcoin based on the transaction history of a prominent exchange or an average estimate across top price trackers. In Google, the value of bitcoin is linked to a US dollar because the prices are obtained from the Coinbase API.
Crypto exchanges connect those who have bitcoin and want to sell it with those looking to buy it. The price might vary in different crypto exchanges because there are varying levels of supply and demand on different exchanges. If the Bitcoin price is markedly lower on one crypto exchange compared to another, this will also shift the levels of supply and demand.
Crypto exchanges work differently than traditional stock markets. Let us look at some of the reasons why price discrepancies exist across crypto exchanges in India.
Market Size
Currently, the total market capitalization of cryptos stands at around $978 billion, including coins that have been lost, so the actual value is less. Crypto exchanges are a subset of the total crypto market. So these smaller markets have more variation in the prices of cryptos.
Trading volumes
Bitcoin prices are directly affected by trade volumes on a particular exchange. Big crypto exchanges will have a higher volume of trades compared to smaller exchanges.
Taxes and Fees
Charges like margins, transaction fees, and tax are associated with transferring cryptos.
Additionally, crypto exchange rates will impact the fiat amount you receive by selling your crypto asset. It is important to choose the right exchange with the most competitive rates.
Conclusion
The difference in Bitcoin pricing is down to location, volatility, volume, speculation, supply and demand, and other associated factors. Researching prices across crypto exchanges should not be the sole deciding factor for a crypto investor. There are other market factors, like margins and exchange rates. You must compare and study all these crucial factors before deciding to invest in crypto.
You can buy Bitcoin with INR through ZebPay in India. ZebPay is trusted by millions and is one of the best crypto exchanges in India. ZebPay is a highly secure platform with the most competitive rates.
