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Is Bitcoin a bubble?
For years, people worldwide have been asking a pertinent question about the crypto industry: Is Bitcoin a bubble? Let’s try to figure out whether there’s some truth to this or not.
Firstly, a “bubble” in the financial world is when assets are overpriced and carry zero intrinsic value (or offer very little).
Facts to know about Bitcoin:
▪️ It has a limited supply of 21 million coins. Unlike fiat currencies, of which governments can print an infinite amount, causing inflation, Bitcoin’s supply will never be altered or manipulated (you can thank Satoshi Nakamoto for baking that rule in Bitcoin’s code).
▪️ It’s decentralized. Bitcoin is a decentralized network, meaning no single entity, corporation, or government can control it. This, in turn, makes it impervious to censorship and manipulations
▪️ Innovative technology. Blockchain technology which is Bitcoin’s underlying technology, has the potential to revolutionize myriad industries, from finances to supply chains
🚧 About 7 million tokens have been registered on CoinGecko since 2021, of which 3.7 million have flattened since then, with 1.8 million flattening in the first quarter of 2025 alone
In the crypto world, just as in the real world, there is inflation, an asset depreciating over time.
Inflation in cryptocurrencies occurs when too many new coins are issued.
A clear example is the cryptocurrency Dogecoin (DOGE). Dogecoin has no limit on the number of coins that can be issued, and up to 5.2 billion new DOGE can be created each year. Similarly, when new dollars are printed, Dogecoin depreciates slightly each year.
Bitcoin, on the other hand, is not subject to inflation; since the total number of Bitcoin can never exceed 21 million, the coin is protected from depreciation.
But frankly speaking, investors barely pay attention to this. Since crypto is very volatile
However, if you come across a coin with suspicious tokenomics—e.g., they’ve made it possible to issue an unlimited number of tokens during any period—this should definitely be taken into account when making investment decisions.
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