Bitcoin is a cryptocurrency at a crossroads

capital controls are tight and governments are dysfunctional. But it could also become a footnote in cryptocurrency history, as competitors prove themselves to be more functional in transactions and better stores of value.

Things move quickly in the world of digital currencies, but regardless of where investors stand on the topic of their usefulness and legitimacy, there are some important points about bitcoin tobeawareof. strategy at Hong Kong-based Rafiki Capital Management.

There were 617 cryptocurrencies at the beginning of 2017, a figure that soared to 1,335 by the end of the year. As of Feb. 5, 2018, that number had climbed even higher to 1,513 on Coinmarket.

Englander wouldn’t be surprised if the number of cryptocurrencies doubles in 2018, but that may be good reason for caution.

“The economics of creating a cryptocurrency, keeping a bunch of coins for yourself and selling the rest look pretty good for the issuer,” he said.

“But discussing valuation based on their finite supply looks like a tired proposition.”

Consumers should expect to pay for the convenience of using a credit card, but they don’t want to be forced to buy shares in the credit card company to do so.

“If I use the blockchain to transact, record, or hold assets in custody, I would expect to pay for these services,” Englander said.

“However, it is more efficient to pay for these services rather than have some token of fluctuating value attached.”

In other words, the cost of providing the service has little to do with the value of the coin or token.