What Is the Economic Purpose of the “Halving” Event in Bitcoin?

The economic purpose of halving is to control the supply of new Bitcoin and enforce a deflationary monetary policy. By cutting the block reward in half approximately every four years, it ensures that the total supply will never exceed 21 million coins.

This predictable scarcity is intended to maintain or increase the asset's value over time and transition the network's security model from block rewards to transaction fees.