Too Long; Didn't Read
Bitcoin is overvalued because it is inefficient, has a price that is extremely volatile, and is becoming more centralized as time passes. The Bitcoin blockchain is inefficient since it runs a Proof of Work consensus algorithm. The main purpose of this algorithm is to prevent network centralization so that people can send money around the world without having to trust anyone in the network. As a technology that is looking to be the currency of the world, the volatility of the currency is unattractive to the average consumer.