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Thy are held up by gas that is lighter than air. The hgher you go, the less dense air gets and therefore the less the difference between the gas being used to hold the balloon aloft and the air outside.

They can therefore only go so high.

Also, most balloons are not pressurised therefore the people fying in them would pass out for lack of oxygen if they went much above 10,000feet

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Q: Why do balloons fly at low altitudes?
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