What Is the Economic Rationale behind Implementing a Periodic Halving Mechanism?

The primary rationale is to create digital scarcity and control inflation. By ensuring the supply of new coins diminishes over time, the mechanism mimics the increasing difficulty and cost of mining finite physical resources like gold.

This predictable, disinflationary schedule is designed to incentivize early adoption and provide a strong store-of-value proposition, promoting long-term holding.