You might have heard quite often recently from some analysts that bitcoin is in a “bubble” however, that shows how they don’t really understand that concept.
Seems like the strength and speed of bitcoin’s price rise is the base for Bitcoin diagnosis, assuming that is the main feature of a financial bubble.
So, what’s happen during a bubble is that the price does not align with the fundamentals of the asset.
Ok, so far, we do not know what bitcoin’s intrinsic value is. Nobody yet knows. This is a young technology that evolves alongside the demand for it. Bitcoin’s unique investment characteristics and unfamiliar metrics make it impossible to apply traditional valuation techniques.
Probably analysts are overusing the term “bubble” and that brings unnecessary confusion.
A strong return does not automatically deserve “bubble” designation.
We need to consider that low rates, a declining dollar, and inflation cause investors to deploy assets in gold and bitcoin.