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Author Topic: Is losing bitcoin in account have a significant impact to the bitcoin economy?  (Read 290 times)
BlackHatCoiner
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November 01, 2022, 01:16:10 PM
 #21

Depends on the amount. Losing a few satoshis isn't going to have a tangible difference, but taking 10,000 bitcoins off the supply is going to have some, given that 10,000 is about 0.05% of the entire bitcoin economy.

Note that probably lost coins, such as those in P2PK outputs, or in lost passwords, might come into circulation in the future. We shouldn't consider them gone for good.

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_BlackStar
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November 01, 2022, 01:34:27 PM
 #22

If someone lose their bitcoins (whether it is small or big amount), does it have a significant impact to the bitcoin economy?
Let's think something very positive, specifically about the price and economy of bitcoin. I'm not sure it will be very significant, but each bitcoin that is lost will make other bitcoin rarer which will then make the remaining bitcoin more expensive. Of course it must be due to the demand factor, but can't conclude that it won't go down because of the volatility.

We shouldn't consider them gone for good.
Of course, something now said to be lost specifically about bitcoin could come back into circulation if its owner one day remembers his password or regains access to his wallet. I agree with you.
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November 01, 2022, 01:41:27 PM
 #23

Of course, something now said to be lost specifically about bitcoin could come back into circulation if its owner one day remembers his password or regains access to his wallet. I agree with you.
Not only that. Coins sent as P2PK outputs have their public keys revealed, meaning that if ECDLP gets broken, which is likely to happen within the next decades with the rise of quantum computing, those coins are likely to return to circulation as well. That's true for every address that has revealed its public key too.

It's also worth mentioning that it's less probable to have such coin loss now more. The risks of messing up with a wallet software in 2009 were far more than they are now.

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CryptoYar
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November 01, 2022, 02:02:41 PM
 #24

~
If someone lose their bitcoins (whether it is small or big amount), does it have a significant impact to the bitcoin economy?
It has a huge impact on the economy of bitcoin. The more the supply decreases, the more the price of bitcoin increases. Why does bitcoin go up after every halving? The reason for this is, the demand remains the same/or increases but the supply decreases due to the low reward of the miners.

See the table below for a better understanding.

Supply|Demand|Price|
_________________|_________________|_________________|
Remains Unchanged|Increases|Increases|
Remains Unchanged|Decreases|Decreases|
Increases|Remains Unchanged|Decreases|
Decreases|Remains Unchanged|Increases|
The law of supply and demand
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November 01, 2022, 03:56:02 PM
 #25

A lot of people underestimate the potential of Bitcoin back in the early days and I am also one of them. However, losing Bitcoin forever will be painful to the people who it happens through their carelessness or underestimation of BTC.
No matter somehow small or big the portion of Bitcoin which are lost forever is, it will automatically impact the Bitcoin economy since the price of the market is based on the level of demand and supply.

 

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