Halving is a way for satoshis to force the price of bitcoin to continue to rise over time. The fewer rewards given to miners will make bitcoins harder to obtain and rarer as time goes by. This is a smart strategy that Satoshi had and I just realized it.
That's not exactly correct though. Just look at altcoins. A large number of them follow the same model as Bitcoin (limited supply + block reward reduced by a certain % on fixed intervals) and they don't always go up.
The truth is that bitcoin price goes up because it is a combination of supply AND demand, not just the supply. In other words the adoption has to grow in order to help the price continue going up. In that process, the rate of new supply being created cut by 50% helps that rise due to adoption.
The weakness of this strategy is that when Bitcoin fails to reach a high price after the halving until the next halving occurs, this can damage public trust and also harm miners.
I disagree.
Even though there are always "weak hands" who bought bitcoin thinking they can get rich over night who would then sell if their silly targets aren't reached, but the majority of people aren't like that. They don't buy bitcoin to get rich quick. They either have long term perspective or they are seeking financial sovereignty which means they are not concerned with whether halving leads to hyped up temporary rallies or not.