It is true that some people buy bitcoins as a form of speculative investment with the goal of large returns, but that does not mean that bitcoin is a bubble. Bubbles are economic cycles characterized by unsustainable highs in market value. They eventually burst when investors realize that prices are much higher than the fundamental value of an asset. Bitcoin is often compared to a famous speculative bubble: the "tulip bubble," which happened in the Netherlands in the 17th century. In 1637, speculators made the price of some varieties of tulips 26 times higher. The bubble lasted six months, burst, and the market never reached the same levels again.

Reality Bitcoin has gone through several price cycles over 14 years and has always recovered, and this year it is recovering once again. As with any new technology, ups and downs are to be expected. For example, at the end of the dot-com era in the 1990s, Amazon's stock fell from $100 to $5, but the company became one of the most valuable in the world in the following decades. Some major Bitcoin investors believe that the cryptocurrency's fluctuations follow a typical pattern of young markets. According to them, Bitcoin will have significant highs and lows, with minor oscillations and longer durations between them until, at some point in the future, it achieves relative stability. But only time will tell if this is true.