[elil17]

In finance a bubble means an economic cycle where asset prices rise faster than their actual value. It is a term of art/analogy but it does not map 1:1 with physical bubbles such as soap bubbles. It does not mean that the underlying asset has no actual value.

The housing example is a great one. The 2008 housing bubble was due (in part) to overvalued houses. Those houses still have value though (they weren't scam houses that only existed on paper).

[kilgnad]

It is a 1:1 mapping to physical bubbles. Like soap bubbles.

I never said the bubble implies the underlying asset has no value. The bubble encases the difference in value and current value. The bubble does not encase the actual asset.

When a bubble pops that difference disappears. But the asset value remains because the intrinsic value was not what the bubble was referring to.

[elil17]

My main point was that just because there is an AI bubble does not mean that AI is not useful/valuable. Seems like we agree on that.