Actually, I believed at it at first as with no effects in its market value however if the amount among many people who lost control of their holdings would be hige, then t least it will have an impact to this industry. Bitcoin should circulate in this market in order to contribute with both demand and supply. Imagine if all investors won't be able to move their holdings to other investors. Will there be price changes? Demand woud be high indeed but as long as no transaction is being made between buyers and sellers, then nothing would make sense. Being in such situation is a bad thing. We witnessed how huge the potential of Bitcoin is, from previous ATH. Given that market is showing positive outlook especially with the next Bitcoin halving, I will fully understand those investors who forgot their keys to access their early investment accounts.

You are missing up some words, it's called "seed phrase" and not security phrase, and it's called hardware wallet and not hard wallet. I hope you understand.
Once theee are loss, the bitcoin in that wallet is as good as gone, it will be there but you can't have access to it again because you can't spend them.


When you said compensate? Where do you get the bitcoins to compensate them from? Charity? Exchange or you want to give them your bitcoin?

First, you need to know that nobody can know if private keys or seed phrase to a wallet address has been loss because the bitcoin will remain unspent in that wallet address forever until someone who have the private keys, so you and I can't tell and the Bitcoin community cannot tell if a wallet is unaccessible.
You should have seen some wallet of 10 years ago been move, how do you even tell if some of those wallets are inaccessible by the owners.




Even Shitcoins with foundations that knows about their investors losses and wallets hacks don't compensate their investors, it's bitcoin that depend on miners reward before the circulating supply can be increase that you want them to compensate? Bitcoin is not some banks that can help you recover money or compensate you when you make mistakes, always remember that not your keys not your coins.

For your information, there are services out there that help those who lost or can't remember their seed phrases get access to their bitcoin. It cost a lot of money and it is like a 50-50 percent chance that it would be recovered or not.

In my estimation, the compensation form lost bitcoin is for more guides to teach people how to safely secure their Bitcoins so that there will not be more Bitcoin lost. It is to prevent more Bitcoin losses in the future.

Any dead wallet is considered burnt address, that is to say if there are any bitcoin in those wallet and the owner lost access it means those coin is burned down, in other hands it has helped to reduced the total supply but if there were ways for the owner to recover that wallet then we consider that person to be excessively wealthy because with whatever amount they had in their wallet considering the current amount that person is made. So, whenever a private key or seed phrase are being misplaced then we can consider that to be gone forever. While holding bitcoin you should consider the security of your wallet otherwise whatever that happens to your seed phrase we can say your investment are no place to be found.

Taking back the lost Bitcoin to add it to the supply wouldn't be achievable because if they do that it means our coin ain't safe because definitely they can access anyone's wallet and claim their Bitcoin as well and moreover, do you know if they actually lost or forgot the seed phrases of their wallet? because some persons can actually buy Bitcoin with the intention to leave it in their non custodial wallets for a very long interval of time without accessing it and it would now look as though they've forgotten their seed phrases and any attempt to either add or subtract the quantity of Bitcoin remaining to be mined will become an error in the process.

A lost bitcoin is a lost bitcoin as no form of recovery without the seed phrases would be obtainable so it would just be stucked there forever after all the owner who lost control of it also bought it with money so if he loses it then it's actually his brunt to bear that's the more reason why Bitcoin is trustworthy because it can never be manipulated unlike fiat whereby if something of such occurs they can maneuver and manipulate it, so it is important to keep seed phrases safe and secured and make an offline backup so that in a case of losing it one can easily recover it. Moreover, what of a situation whereby the owner dies? So no one can inherit the coin because that is what stands bitcoin out as there is nothing like a mediator to ones assets.

Bitcoin has a limited supply and we just can't change that anymore whatever we do, If we could easily compensate for the lost Bitcoin in the wallets, and then give it back on the supply in the market that could have a huge effect on the market and it just means that the Bitcoin supply increase which is not possible, Also that's what makes Bitcoin unique having a limited supply and one of the reasons why it has a volatile market price in the market if you have lost Bitcoin then sorry for your lose, it's your fault losing that seed phrase, it cannot be recovered anymore. For sure it is going to break Bitcoin if we are able to completely change what Bitcoin is including the supply of Bitcoin itself.

On the other hand, losing Bitcoin means it wouldn't be moved in the wallet anymore meaning the supply just decreased increasing the market value of Bitcoin since the supply is limited, it's not totally a bad thing it has both negative and positive effects on Bitcoin I guess.

The loss of Bitcoin represents a poignant time for other features of the cryptocurrency, especially its immutable and decentralized nature.  Whether due to a user's forgotten password or incorrect key and hardware failure, the importance of keeping records securely and accurately is immense.  However lost can never be brought back. Moreover, it is not possible to create the amount that has been lost. Because it will bring about a huge change in the basic features of Bitcoin and will have a severe impact on the user

OP, can I ask you what you had in mind when you wrote this post?


Didn't you respond to that thread stating that there is a limited supply of bitcoin? Moreover, how can you find out how many bitcoins are actually lost and how many are regularly lost due to the fault of the owners? Will this information be correct?
I don't see your logic.

The base unit of Bitcoin is Satoshies. Each Bitcoins is equal to 100 Million Satoshies. So 21 million x 100 milllion is quite a big number.

Lets say about 5 Million Bitcoin are lost, that leaves still 16 million x 100 million Satoshies, still quite a lot.

So I see no reason to speculate how the "lost" Bitcoin can be replaced.....