Asset price bubbles are spontaneous communal Ponzi schemes: Early “investors” get their returns from later “investors”, not from any actual increase in the value of the “investment”.
There’s a fine line there, though, because the value of (for example) real estate does increase over time with scarcity relative to population, as well as other factors like (for example) somebody building Rockefeller Center next door. At some point any idiot can see you’re in a bubble, but “market value” is still usually a better proxy for “value” than any other information we have access too. I’d rather have occasional bubbles than permanent price controls.
I’m pretty sure there’s no actual value in that observation, but I wanted to practice typing.