I understand that the number of bitcoins is inherently limited. What happens if someone gets (one way or another) some number of bitcoins and then either loses his wallet to (hard drive crash, hurricane, accidental wipe, death of the owner, whatever). Are these bitcoins lost forever and taken out of circulation? So, finite number of bitcoins going to be infinitely depleted?
I gather that the value of bitcoin will rise as a result. They are also divisible, so we should have bigger supply of smaller parts as a result. But are they infinitely divisible?
There would only be a total of 21M to be created(if Im not mistaken). The question in here is what would happen when the total count reaches its limit.
You will just divide it into smaller units. It is currently 0.00000001 and when the need is there to add smaller units, then the
developers will propose this and code it and the full nodes will decide if they want this change. Once they run this new code
changes, the smaller units will be in affect. Some people send bitcoins to burn addresses to decrease the amount of coins
that would exist and to increase it's value.
.... New coins are added every day too.