Seems to me it all depends upon the actual max. speed you want to measure
No it does NOT when using an A/B encoder
You will, due to the unavoidable slack in gears, couplings etc get pulses at a much higher frequency than you ever dreamt the encoder could produce.

I have designed an encoder circuit (we use it for liquid level gauging) with a 2-bit Gray code encoder in which case you get absolute position and jitters is not a problem. However the A/B encoders are much more common and have fewer wires to interface.

Mehmet: what type of encoder do you plan to use A/B or grey code?

Erik