Is Bitcoin a Bubble?

An economic bubble is a situation where the price of a good rises far above the item’s actual value. It happens as a result of a surge in asset prices that is caused by vivacious market behavior.

According to Investopedia, during a bubble, assets are traded at a price, or within a price range beyond the asset’s actual value i.e. the price does not align with the fundamentals of the asset.

Bitcoin is the most popular type of cryptocurrency. Cryptocurrency uses blockchain technology for protection.

Bitcoin has a limited supply that will not exceed 21 million bitcoins, at least in this lifetime. Such scarcity is one component of creating value.

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