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Determining the value of crypto
While it’s easy to conflate crypto with bitcoin, there are actually around 4,000 such currencies in circulation around the world, more than the number of fiat (government-issued) currencies in existence. The number of cryptos is likely to keep growing, largely because it’s so easy to develop a new coin, which in basic terms is simply computer code generated by open-source software designed to transact value online.

The way a coin is developed, and for what purpose, has a massive bearing on its value. While there are thousands in existence, the top 20 coins are believed to constitute around 99% of the market by volume, according to crypto website CoinDesk.

Much like fiat currencies, the price of cryptocurrencies is heavily swayed by supply and demand. But it’s also determined by the cost of production. “Look at the use case of a coin,” says Edward Cooper, Revolut’s head of crypto. He emphasises utility as the most important component in a cryptocurrency’s value. “How much technical engineering is going on to update the protocol? What is the calibre of the founding team?”