Is Bitcoin a bubble?
Ever since the inception of Bitcoin, but especially following its jump in popularity, there have been questions on whether it is safe to invest. Nobody wants to lose their life savings because of FOMO (Fear of Missing Out), therefore one of the most common questions is: is Bitcoin a bubble?
An economic bubble is trade in an asset at a price or price range that strongly exceeds the asset's intrinsic value. How much of a bubble is Bitcoin? This is hard to know, as bubbles are often conclusively identified only in retrospect, once a sudden drop in prices has occurred.
Cryptocurrencies are different than traditional assets. Answering the question “Is Bitcoin in a bubble?” is tricky because while Bitcoin may be exhibiting behaviors similar to a bubble, it has also not yet completely fallen through, so we cannot know for sure.