Since many people try to convince us that Bitcoin is a bubble and how we will lose our money eventually, I wonder if money is not a bubble actually. There exist economies in which money has a positive value in spite its market fundamental is zero. That means fiat money has zero value. Fiat money is a social contrivance. We take money from other people because we know other people will take it from us. In theory and practice the fiat money is a bubble.
I would not call FIAT to be a bubble due to several reasons:
First, the whole fiat system is managed by the government through the Central Bank. They manage the inflation, check the necessary prices in the market, and adjust the following depending on their research and data;
Second, the value of fiat depends on the number of gold reserve the country has. Depending on the reserves the value of fiat may exceed the proportionate of its gold reserves but it would render its value useless; and
Third, fiat is centralized in nature which is accepted as the universal medium of exchange. If it were a bubble, then its value would be significantly large.