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Bitcoin, other cryptocurrencies headed to zero: Goldman

FILE PHOTO: Broken representation of the Bitcoin virtual currency, placed on a monitor that displays stock graph and binary codes, are seen in this illustration picture, December 21, 2017. REUTERS/Dado Ruvic/Illustration/File Photo

Cryptocurrencies rebounded on Wednesday after their recent collapse, but according to Goldman Sachs, they have no hope of regaining their recent peaks.

In fact, the investment bank said in a research report that they will most likely end up being worthless.

“Most, if not all, of today's digital coins will find a final resting place at zero,” Steve Strongin, the firm’s global head of investment research, said in a report published Feb. 5.

The recent price fluctuation in cryptocurrencies including bitcoin is evidence that the market is in a bubble, according to Strongin. He added that cryptocurrency investors should prepare for their coins, in their current form, to lose all of their value because they have no intrinsic worth.

While Strongin was pessimistic about bitcoin, he is more optimistic about the cryptocurrencies’ underlying technology: blockchain.

Bitcoin was trading up more than 6% on Wednesday, finally catching some footing after a big collapse. Trading at around $8,200, bitcoin is still down significantly since mid-December, when it peaked just below $20,000.

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