Is Bitcoin a Bubble?

At first, it is vital to explain the definition of a bubble. A bubble occurs when the price of an asset is much higher than the intrinsic value of this asset is. The amount of this intrinsic value is different from investor to investor. The reason for this is that investors have different features and are living in different areas. For example, some investors have a higher life expectancy than others. If a stock will pay dividends for 200 years then this stock has a higher intrinsic value for the investor with the longer life expectancy. This logic also applies for bitcoin thus a bitcoin holder can receive “dividends” in the form of altcoins when the bitcoin community applies a hard fork. For instance, on the 25 October 2017 one bitcoin will generate on bitcoin gold to its holders.
The area where the investor lives is also very important for determining the intrinsic value of an asset for the investor. For example, if an investor lives in a county which has a currency with a very high inflation rate (let’s assume an inflation rate of 10.000% per anno) then it makes sense for the investor to exchange his currency to bitcoins because he or she has not much to lose.
All in all, it can be said that the stability of the investor’s currency and his / her life expectancy are two main features to gauge whether bitcoin is from the point of view of this investor a bubble or not.