Now it is true that for a sector that was literally created from scratch just 12 years ago and continues to attract bigger names to Wall Street, it was quite an achievement.

Source: coinmarketcap.com

Also, it is simply mind-boggling to see the great diversity of coins such as Ethereum, Cardano, Stablecoin (in addition to the mighty Bitcoin) listed on Coinmarketcap, with 30 added in the last 22 hours alone. Here, one of the attractions of Bitcoin is that it can be used as a means of payment, like any currency in an increasing number of scenarios, but more importantly, it can be produced digitally in a decentralized manner, using the computing power of IT equipment. and security encryption techniques. This is in stark contrast to the bulky banknotes printed by central banks. In addition, any individual can participate in the creation of new Bitcoins or any other crypto through a process called “mining”.

Force FX

Now, looking at Fx, there are dozens of central banks each printing their own country’s currency, and whether for the international exchange of goods or for speculative purposes, each nation’s money must be traded with another. This, in turn, has given rise to over a hundred currency pairs, of which around 18 (including EUR / USD or CAD / USD) that are listed by forex market makers due to their positions of. liquidity.

Additionally, with a daily volume of over $ 6.6 trillion (according to a 2019 banking survey), the forex market remains the largest financial market in the world, eclipsing all of the 24-hour trading figures of the world. The entire crypto market, which only peaked at around $ 248 billion. in 2021. As a result, Fx outperforms cryptos in daily volumes despite being made up of just 170 currencies traded on the global market, compared to a staggering 8,589 digital coins.

Continuing further, the monthly FX volume visualization chart below, based on FX derivatives trading on swap execution facilities in the United States, shows that trading volumes have grown steadily since. 2014, in the order of trillions of dollars, with a peak of 1.6 billion dollars coinciding with the stock market crash of March 2020.

Source: fia.org

This chart further shows that despite the advent of cryptos starting in 2008, the forex market has not slowed despite its immense size, with some forecasts predicting that it will experience a compound annual growth rate of 7.5% in the year. 2021-2026 course. Now there are uncertainties associated with COVID-19, but cryptos are unlikely to overtake Forex anytime soon. Another reason for Fx’s strength is that the fiat currency pair exchange remains “the largest and most liquid asset market on earth.” and is becoming more and more popular among small traders in addition to large institutions.

Crypto is getting stronger

This could change as blockchain technology becomes more prevalent in everyday life, such as transactions, actual condition, artwork, fashion, and the like. To this end, there are metaverse projects like Sandbox using its own token or digital coin called SAND. The project relies on the Ethereum blockchain to manage the ownership of digital land and non-fungible tokens or NFT assets. Likewise, another Blockchain metaverse called Decentraland will host its first Fashion Week in March 2022 leveraging the virtual clothing business. It has partnered up with UNXD, which recently hosted Dolce & “Gabbana’s premier NFT clothing collection”.

Finally, virtual lands on Sandbox and Decentraland are being sold for millions of dollars according to Markets Insider, but to be realistic, the entire crypto ecosystem will require considerable expansion to compete with Fx, and there is absolutely no chance that this will happen in 2022.