While some economy analysts like to say that Bitcoin and other cryptocurrencies stocks are actually in a market bubble, other experts give serious reasons on why applying that term to crypto is not correct.

According to Investopedia: “During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset’s intrinsic value (the price does not align with the fundamentals of the asset).”

Bank of America Securities chief investment strategist Michael Hartnett said that Bitcoin looks like “the mother of all bubbles”. And Bloomberg.com published that Bitcoin is “an atypical  bubble” much similar to “previous one-off speculative asset-inflation episodes in history like tulip mania in the 17th century, or gold.”

However, economy analysts at coindesk.com explain that the word bubble is being misused: “Anyone saying that bitcoin is in a bubble is making a judgement call on its intrinsic value”, and point out that those who say so “never share their calculations or even reveal the number that they’re thinking of.”

Supporting this line of thought, UBS’s Chief Investment Officer Mark Haefele, also explained that the concept of bubbles can be deceptive. “There is often a grain of truth behind their narratives. The dotcom bubble, for example, correctly anticipated the impact of the internet”, he said.

Haefele also added that even though “all of the bubble preconditions are in place”, and that “the cryptocurrency markets are exhibiting signs of excessive speculation” these markets do not yet “pose a broader systemic risk.”

At the same time, at coindesk they emphasize that “bitcoin’s unique investment characteristics and unfamiliar metrics make it impossible to apply traditional valuation techniques.” And they add: “We’re looking at a still young technology that is evolving alongside the demand for it.”