Hoarding has the same effect, so you don't even have to have 5+% loss rate, the price will rise anyway.
But isn't it the same with gold, stocks and so on? The early birds always have a big advantage.


Newcomers will want to profit themselves. This is why people are investing, actually. And with companies already acquiring bitcoin as reserve/store of value, I don't see any problem here.
Again, you have this "problem" with anything that's scarce and is being hoarded, no matter the loss rate.


The loss rate can be a problem only for the coins in circulation, used as currency. That's why people came with solutions like using satoshi or even millisat as measure unit.

It's good that as a newbie you are thinking about these things. As for me, getting struck in the head by lightning the next time it rains is a possible scenario, but I don't base my life on it.


I consider the premise false, therefore the conclusion false as well. Although you are partly right that as time goes by Bitcoin is more expensive, therefore it costs people more money than they earn from their labor to buy it.


But I, to anyone who is hesitating whether to buy Bitcoin today, I would recommend not to think too much about it. These forums are full of people who could have bought at one point in the past, didn't and then regretted not having done so.

A good strategy is to DCA, with as much weekly or monthly as you can according to your finances. It's better that than waiting without buying and then complaining that it's too expensive and you're working too hard to get it.

I don't think a future annual loss rate of 5% is realistic. With currently around 19 million mined Bitcoin, this would mean that almost 1 million BTC would be lost per year. Even 1-2% I think is too much. In the past, this may have been the case, because the hodlers were more careless with the private keys, since Bitcoin had only a low value. Nowadays, Bitcoin are also priced like gold, and people are taking care of them accordingly.

I don't know where you get those percentages from but certainly your assumption is exaggerated. As of today, we are not losing anything close to 5% per year. At the beginning it was more normal that many were lost, because it was a new thing, which was worth very little and people were not careful. Today, in general, much more measures are taken to avoid losing your private keys, but even so, inevitably a small percentage will continue to be lost, much smaller than the 5% per year that you suggest.

But even if they were lost that much it would not be a problem because what would happen is that the rest would be worth more and when the time came a consensus could be reached to further subdivide the remaining ones. Just as 1 Bitcoin is equivalent to 100 million Satoshis, each Satoshi could be subdivided into 100 million miniSatoshis or whatever name you want to give it. And in fact, this is something that is already done with LN because millisats are used.

Problem solved.

I am inclined to think that Satoshi (being it one person or a collective) did not think about the situation where BTC and crypto are at this point in time. Not that he couldn't have conceived it, but he might not think BTC should reach that point and thus never put much thought into it. Crypto is definitely pushing its boundaries further and constant changes to it should be made to meet the demands of its expansion. 

^ This is what Satoshi Nakamoto thought about coins being lost or burned.

Electrum seems to be the best non-custodial client for bitcoin. It's an original bitcoin wallet which works only for bitcoin (another version also designed for Monero if i am not wrong). If you can not get familiarized with Electrum, other clients will look so sophisticated for you especially when you look for a specific feature as there are no fuly detailed documentation for each client.
I found this tutorial that can help you familiarized with Electrum (Setup) : https://www.youtube.com/watch?v=2MP_EMxypCE
If you can well practice english then this wiki can help you better : https://electrum.readthedocs.io/en/latest/
However if you wanna try another client, i suggest you to choose from this list : https://bitcoin.org/en/choose-your-wallet?step=5

Since you are looking for a wallet that only works for bitcoin, maybe you can chose electrum.
https://www.investopedia.com/best-bitcoin-wallets-5070283#:~:text=Mycelium%20is%20an%20open%2Dsource,similar%20to%20the%20Electrum%20wallet.

Why you chose Electrum? because is it secure, open-source, and offers advanced features and options.

PROS AND CONS
Pros
Customizable transaction fees
Greater level of security than most hot wallets
Cons
Bare-bones user interface
Only works for Bitcoin

OVERVIEW
Electrum is one of the original Bitcoin wallets. It has been around since 2011, two years after Bitcoin’s creation, and has changed little since.12 While this wallet is bare-bones in terms of its user interface and commitment to only Bitcoin, it excels at this primary function. Electrum is also more suited for advanced users due to its complex options.

Electrum is open source, allows its users to set custom transaction fees, and has the option to choose between legacy Bitcoin and Segwit. It also offers users the ability to determine the level of security they wish to use. For example, you can create a standard wallet, one with 2-factor authentication, or a multi-signature wallet. You can also elongate your seed phrase with custom words.

Electrum is perfect for the more advanced Bitcoin holder who wants great security features and customizability, all in a simple layout.

From what i understood from OP, every time he made a transaction, he can see that the rest of his holdings have been moved to another address (Change address) so he thinks that the private key have been updated which is absolutely not true. It's clear that he doesn't know about the all the private keys being combined in a single seed.
My suggestion for him is Electrum client which i always recommend for both experienced users or new comers because it has all the features with a friendly-use interface. Better than Electrum, i recommend using a physical hardware wallet for staking considerable amounts .

All wallet do implemented BIP39, so any wallet can recognize any seed pharse generated on other wallet since they're work same. If you can't import your seed pharse or the wallet doesn't have such features, pretty sure it's custodial wallet.

Don't need to worry if your private keys always change, it just for better privacy. If you don't want your private key changed, you can use electrum.

Using open-source and non-custodial wallets like electrum or wasabi wallet, you have full control over your bitcoins. Limit storing your bitcoins on exchanges, it is very risky to give your assets to third parties to hold.
If you are a long-term investor and you have money, better buy yourself a cold wallet( ledger, Trezor).

Most wallets now generate private keys based on a "seed phrase" (aka "recovery phrase"). Because the private keys generated by the wallet are always the same for that seed phrase, there is no need to back up every private key. You only need to back up the seed phrase.

Being concerned about multi-coin wallets with low security is fine, but any concern about a wallet using a unique address for each transaction is unfounded.

What official website are you talking about? And what recommendations were you given?

What wallet did you use before? Most wallets these days show the seed phrase rather than the private key for easy backup. And, after transferring bitcoins, the sending address might be changed to an unused one for privacy, but the seed phrase or xpriv remains the same.

• Bitcoin core,
• Electrum.