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Could crypto crack forex?

  • Forex the largest and most liquid market globally worth US$2.4 quadrillion.
  • Cryptocurrency is growing exponentially but still dominated by Bitcoin.
  • India, US, Russia, Nigeria, and Brazil trade the most cryptocurrency overall.

The cryptocurrency market is no fad and while infinitesimal in size to the foreign exchange (forex) market, the digital currency is growing exponentially worldwide.

Australian federal financial services minister Jane Hume said crypto is no passing craze, disagreeing with comments made by the Reserve Bank of Australia.

Hume was reported as saying that cryptocurrency was ?not going away any time soon?, regardless of people?s views on it and its recent volatility.

The forex market is the largest and most liquid market on Earth, and is worth US$2,409,000,000 (US$2.409 quadrillion) with US $6.6 trillion on average traded every day.

On the flipside, while the crypto market is growing rapidly and is worth about US$3 trillion, Bitcoin dominates in terms of trade and value with more than 40% of the market?s value tied to the digital currency alone.

Crypto markets, like forex markets, are driven by the supply-demand balance but digital coins are also affected by other aspects such as influencers, and regulatory regimes.

While cryptocurrency trading is mainly done by individuals (mostly men under 30), forex market participants are mainly financial institutions such as hedge funds, investment managers, multinational corporations, as well as investment and commercial banks.

According to Statista, the US has the most Bitcoin trading volume on exchanges followed by Russia, Nigeria, the EU, and China.

India, the US, Russia, Nigeria, and Brazil trade the most cryptocurrency overall.

Nearly 80% of forex trading occurs in the UK, the US, Hong Kong, Singapore and Japan.