Experts and even the public know a lot about bubbles, but they're often only identified after they've already burst. Key traits: ● Lack of fundamentals ● Instability ● Excessive risk-taking ● Media hype ● Crash The idea is simple: buyers push prices above what assets are really worth. But as bubbles form, they become quite intricate and difficult to unravel. The progression of a bubble follows five stages: 1. Displacement.
● The asset has been increasingly adopted by institutions, its utility has grown as a financial asset, and it is globally recognised as a digital store of value. ● Bitcoin doesn't fit traditional valuation methods because it doesn't generate revenue like companies and commodities do. It's in a category of its own. So, it doesn't quite meet all the criteria of a bubble.