A bunt is typically designed to advance a base runner. It is most often employed when the infield is playing deep. As a bunt attempt increases the odds of making contact with the ball, bunts are often used by National League pitchers who aren't paid for their skill at the plate.
A sacrifice bunt designed to advance a runner from first or second base is generally laid down in the area between the mound and first base - behind the runner. A bunt designed to advance a runner from third base is generally placed between the mound and third base.
Bunts can also be attempted for a base hit. A "suicide squeeze" is one of the most exciting plays in Baseball. It results when a runner on third base breaks for home on the pitch as the batter attempts a bunt. A bunt made with two strikes that rolls foul is a third strike and the batter is out. This differs from other foul balls.
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It is an attempt to speed up the game to have a ball bunted foul after two strikes called an out, since it is relatively easy to make contact with the ball on a bunt and bunts are often fouled off it only stands to reason that this would be true. I'm sure there are other reasons, but, I believe this is the main reason.
It is too easy to bunt a ball foul.
A player could, in theory, continue to bunt the ball foul for 20 pitches and wear out the pitcher.
The rule stating "Foul ball on a bunt is always considered a strike" prevents this from happening.
Over the years there have been players who can hit the ball foul on purpose without bunting, and have used this talent to wear out a pitcher. It requires more bat control than most players have, however.
You bunt to get on base, just like a hit. You also bunt to sacrifice in order to move runners on base.