In general, a bubble creates a feeling of success and prosperity, even though it's only temporary.
Like we saw in bitcoin's 2011 bubble, people overlook reality and give projects and ideas a feeling of success, even though it cannot last because it won't be able to sustain the momentum. The good projects and ideas ignore this, knowing its temporary; the bad projects do not. Bad projects become caught up in the bubble, but when it pops and shown to be the fake players they were all along.
The dot com bubble, which people tend to act like was so destructive actually invalidated a lot of bad ideas. We'll always be richer when bad ideas fail because it makes room for good ideas. The last thing we want is bad ideas to survive because of low or negative interest rates, or because institutions try to create perfect stability, which keeps bad ideas in existence. Can bubbles be painful? Yes, but the pain is only temporary and by removing bad players, it's a temporary pain that increases wealth (Hebrews 12:11).
Bubbles in a sense are seen as a negative situation in the history of bitcoin since the hype was followed by the fall that caused many to lose huge amounts of money. But on the other hand the previous bubbles gives us good experience as to how we should handle bitcoins. This time around we are more conscious and observant on bitcoin trend to avoid big losses.