The macroeconomic state in which asset value surpasses the real economy and easily loses the ability for sustainable development is the bubble economy. The bubble economy is often supported by a lot of speculation, and its essence is greed. To put it simply, in a loose monetary environment, asset prices deviated from the fundamentals, and then soared and plummeted. The bubble economy has repeatedly appeared in human history, such as the tulip mania in the Netherlands. Even now, many people think that the US stock market, Chinese real estate, and Bitcoin are the three major financial and economic bubbles. What do you think, do you think Bitcoin will become the biggest bubble economy in history?
The sudden rise in prices due to increased demand sometimes make small as well as large bubbles which burst out with the market crash.It is not the case with only Bitcoin but you would find some stocks overpriced because people rush to invest in them and when the market become normal it falls to the original prices and people call it bubble.But in my perspective bubble is something that burst once cannot be blown again like dot.com bubble which has never happened again.Bitcoin price volatility may produce small bubbles due to unexpected surges like the current ones but it will always have a utility to serve which will derive it's prices with limited supply.So in reality btc is not a bubble.
