Bitcoin, other cryptocurrencies headed to zero: Goldman

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.

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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.