Bitcoin has seen spectacular surges and declines in its brief history. It has crashed and revived every few years. Much of this has to do with psychological factors. Bitcoin generates excitement as many treat it as an alternative to fiat currency. Some treat it as an asset like gold which holds its value, remaining immune to the actions of the governments. As we know, governments are loath to lose control over currencies. Bitcoin has recently reached its peak, and it will be a while before it revisits that peak. It is too premature to say that the bubble has burst. Whether or not it becomes an essential part of the modern financial system will depend on the number of users it commands, and the way bankers facilitate such a shift. Bitcoin keeps evolving, and is worth as much as people are ready to pay for it. It is a pegged to the risk appetite of the society.