Bitcoin is not in a bubble but other digital currencies are "flooding the market with perishable supplies of worthless value," according to the co-founder of financial technology company Glint.

Ben Davies told CNBC that bitcoin does appear to be overinflated but that this obscures the bigger picture.

"Bitcoin is not a bubble, albeit it has all the hallmarks and antecedents that are the precursor to a bubble," he said in an email to CNBC on Monday.

"The term bubble tends to indicate a price no reasonable future outcome can justify. In price terms, bitcoin and altcoins (alternative cryptocurrencies) are in a bubble. In value terms, bitcoin is not."

Davies said that, while the price of bitcoin was based on speculative trade, its value was a different story.

"If you bet against bitcoin, you are betting against the exchange of value afforded by the internet," he said. "The internet exchanges information through various protocols, just as bitcoin conveys an exchange of value of a good or service when it's spent. So if its utility is increasing, the network value will continue to rise."

Bitcoin's price edged up slightly Tuesday morning. The world's largest digital currency was trading at $11,786.81 at 8:02 a.m. London time (3:02 a.m. ET), up around 1 percent for the session, according to CoinDesk data.

A number of big bank executives have referred to bitcoin as a "bubble" due to its sharp rise. The price of the cryptocurrency has shot up more than 1,000 percent since the start of the year.