Interesting graph, @Cryptopotamus!
The key takeaway point from it is that if you trade EUR/USD with 14:1 leverage (approximately 7,142.86 euros in your account for every standard lot of 100,000 euros you trade), then you will experience volatility on that trade comparable to someone trading bitcoin with 1:1 leverage (i.e. without leverage). How many people do you know who trade EUR/USD with 14:1 leverage?
The volatility of cryptocurrencies such as bitcoin has certainly grabbed headlines over the past year. By contrast, major currency pairs such as EUR/USD are notable for their relatively low volatility even when compared to other more exotic currency pairs such as USD/ZAR. At the time of this post, the average daily volatility of USD/ZAR (1.54%) is almost double that of EUR/USD (0.78%) over the past ten weeks: https://www.mataf.net/en/forex/tools/volatility
Though not as dramatic a volatility difference as the one you highlighted for bitcoin, it is still reflected in the higher minimum margin requirement the CFTC and NFA have set for USD/ZAR (5%) compared to EUR/USD (2%). FOREX.com UK* applied a similar rationale in setting minimum margin requirements for the bitcoin pairs we offer (BTC/USD, BTC/GBP, BTC/EUR and BTC/AUD) at 25%.
Leverage magnifies gains and losses, which is why we emphasize how margin requirements should be set by regulators and brokers (and in the case of futures by exchanges as well) by taking into account the perceived risk of a given currency pair, or cryptocurrency pair. Traders should also evaluate their own risk appetite and financial situation to determine what amount of leverage is appropriate whether trading major currencies, exotic currencies or cryptocurrencies.
*Spot bitcoin trading is not available to FOREX.com US clients at this time, but US residents now have access to bitcoin futures trading.