Bitcoin has no use value, only exchange value, and because it is has no worth in use other than what others are willing to pay for it, it is always in a bubble: these happen when prices of assets get dislodged from their fundamental value. So Bitcoin is the perfect bubble. Now the obvious question that this raises is the following: Is Bitcoin so different from the dollar? a dollar bill also has no use other than what people are willing to pay for it. and if people decide they wish to trust the people who create the Bitcoins more than their own government, then perhaps it could be an alternative medium of exchange.