Bitcoin trading at over Rs 2 lakh in India as global prices cross $2,500

Recently, the Centre issued a discussion paper regarding Bitcoin regulation

A surge in demand has seen a price rally in crypto-currencies worldwide, with buying led by investors in the US, China, Japan, Korea and even India.

The average bitcoin price is around $2,670, about 155 per cent more than at the beginning of the year. In India, it went up to trade at Rs 2.26 lakh at the time of writing this report. 

With supply lagging, the India price is at a 20 per cent premium to the global one; the South Korean market is at a 35 per cent premium, at $3,800. The US Bitstamp index is quoting at a $100 premium to the Chinese market. 

In India, one exchange has had to issue a cautionary note to investors; another is facing a system slowdown. 

Zebpay, the largest exchange here, with a little over half a million investors, tweeted: “Bitcoin prices are very volatile now. Please use caution while investing. This is a new technology innovation on a global platform but at an early stage. Your investment should match your knowledge (about the bitcoin).”

Another exchange, Coinsecure, among the top three, said: “We have been experiencing exponential growth of users on our website, causing slowness and stress on our system. This may continue for a few more days.”

Globally, crypto currencies’ market capitalisation has surged to $89 billion. A sharp increase in prices of other crypto currencies, especially ethereum, has pushed bitcoin’s market cap below 50 per cent of the total. At the beginning of the year, Ethereum’s price was $8.5; it is now above $200, a 2,400 per cent return. 

The top three crypto currencies —bitcoin, ethereum and ripple — have a combined 80 per cent share in total market cap. Japan has officially recognised bitcoin and other crypto currencies. 

As reported earlier, the finance ministry here has issued a discussion paper on whether such currencies should be regulated by the government or there should be self-regulation.