[2016-11-17]Indian Bitcoin Enthusiasts Pay US$125 Premium To Buy Cryptocurrency

[WishICanTurnBackTime]

Indian Bitcoin Enthusiasts Pay US$125 Premium To Buy Cryptocurrency

The Bitcoin price is spiking in India as we speak. UnoCoin, one of the country’s leading cryptocurrency exchanges, marks the price at RS 59,148. That is well above the current US value per Bitcoin, indicating the demand for alternative financial solutions is huge in India right now. But is this a sign of things to come, or just a temporary price boost?
Ever since the vast majority of cash in India was suddenly declared “illegal”, the country has been a mess. Financial turmoil is affecting everyone, and capital outflows are becoming more prevalent. Interestingly enough, a lot of people are flocking to Bitcoin as a way to hedge against future financial instability.

http://www.newsbtc.com/2016/11/17/indian-bitcoin-enthusiasts-pay-us125-premium-buy-cryptocurrency/

[Hazir]

India hopping on bitcoin hype train is something we all eagerly await. It will bring huge push for bitcoin price.
Not all cash in India wasn't declared illegal - Indian Government just banned 1000 and 500 rupee banknotes to fight counterfeit money and rampant corruption.
It was still a dick move in my opinion, as they give Indian people time to exchange their banknotes until end of December.
But Indian people realized that if Government can declare high denominations banknotes illegal then they can do whatever they want with FIAT.
And here is great chance for bitcoin to take its place as the most desired asset in India.

[aso118]

There has always been a premium in India, it is just widening now.
An earlier article from cointelegraph gives a graph of the increase in premium, post the Indian Govt's move to withdraw high currency bills.


https://cointelegraph.com/news/in-midst-of-demonetization-chaos-bitcoin-purchases-in-india-increase-by-20-30-percent

[1Referee]

That's a hefty premium for sure, but the gap between western exchanges and the ones in India won't stay that large for long. It's just a matter of weeks, or perhaps a month, before we will see it shrink down to a more playable/acceptable amount. I only wonder why no one big has exploited this premium yet? I imagine a whale with a few thousand BTC can supply their market with so much coins, that the gap will instantly shrink down several factors. Or perhaps their market is simply too thin for that as it is lacking decent liquidity.