Coinbase Says It’s Difficult to Predict the Effects of a Bitcoin Halving

The Coinbase report says that it is still difficult to predict the consequences of the Bitcoin halving, which will take place in 2024.

Many experts predict that the reduction of the block reward for miners will have a positive impact on the value of BTC. However, Coinbase believes that it is impossible to form a model of cryptocurrency behavior without taking into account external factors.

The first halving took place in 2012. Subsequent halvings took place in 20126 and 2020. The 2024 miner reward cut will be halved from 6.25 BTC to 3.125 BTC.

David Duong, head of research at Coinbase, recalled that previous halvings were influenced by external factors such as fiscal policy and consumer inflation.

The expert stressed:

We assume that the next halving in 2024 may have a positive impact on the value of the coin. However, we believe that forecasting the consequences of this event is speculative.