Scientific analysis on the contribution of lost Bitcoin to holders

[Wiwo]

The concept of Bitcoin and the Satoshi idea for its creation, apart from serving as a digital currency also have interest generating tendency that is was referred is refer to as digital gold and a store of brings
This brings us to the topic: Lost Bitcoin
Lost Bitcoin are bitcoins that are locked forever or you this are coins that are lost with the private keys to the wallet unrecoverable, what impact does this has on the Bitcoin network and price since the coins are lost forever there will not be activities from the wallet holding so the network does t get congested because its activities and also the total Bitcoin supply will be reduced which bring scarcity.
So in totality when the available supply is limited and the demand increase the holders of Bitcoin gain interest so the price system of bitcoin work just like every other system with various features

[Oshosondy]

There are lost bitcoin but in a way no bitcoin is lost in value.

The reason is because as the supply is reducing, the market price will increase in a way the lost coin value is migrated to everyone holding bitcoin.

But indeed lost for people that actually lost bitcoin.

Effect of lost bitcoin on bitcoin network? No effect because the network is adjusted every 2016 blocks to make confirmation possible 10 minutes in average while nodes will continue to validate the mined blocks and the transactions that are included.

[Pmalek]

It's impossible to prove exactly which coins are lost and which are just being stored for years. You can't rule out that hodlers have coins on addresses that have seen no activity for 10 years or so. 

what impact does this has on the Bitcoin network and price since the coins are lost forever

Negative impact for the people who lost their private keys, but a positive impact for everyone else. Bigger circulating supply multiplied with the price per unit equals to a bigger market cap.

...and also the total Bitcoin supply will be reduced which bring scarcity.

Like you said, scarcity of an asset is good to bring the price up if the demand increases. Many reports lately have been showing that there are less and less bitcoin on exchanges while the demand remains high. Holders and miners aren't prepared to sell, but buyers are lining up to purchase. That's scarcity for you.

[Oshosondy]

It's impossible to prove exactly which coins are lost and which are just being stored for years. You can't rule out that hodlers have coins on addresses that have seen no activity for 10 years or so.

They are just estimated, data from different sources are different and the methodology used can be slightly different. Like glassnodes said about 10% might have be lost, some other reports said 25%, some estimated it to be between or higher.

Negative impact for the people who lost their private keys, but a positive impact for everyone else. Bigger circulating supply multiplied with the price per unit equals to a bigger market cap.

Did you mean reduced supply? The supply is not reduced in the calculation but it will counts towards the price and marketcap as people are demanding for more, the effect of the reduced supply may be noticed making it count towards the marketcap and price, but estimated on the calculation along the mined supply. From the calculation, bigger circulatory supply will only result to reduced price.

[Tellek Garing]

It's impossible to prove exactly which coins are lost and which are just being stored for years. You can't rule out that hodlers have coins on addresses that have seen no activity for 10 years or so.

They are just estimated, data from different sources are different and the methodology used can be slightly different. Like glassnodes said about 10% might have be lost, some other reports said 25%, some estimated it to be between or higher.

Negative impact for the people who lost their private keys, but a positive impact for everyone else. Bigger circulating supply multiplied with the price per unit equals to a bigger market cap.

Did you mean reduced supply? The supply is not reduced in the calculation but it will counts towards the price and marketcap as people are demanding for more, the effect of the reduced supply may be noticed making it count towards the marketcap and price, but estimated on the calculation along the mined supply. From the calculation, bigger circulatory supply will only result to reduced price.

But when the coin become inaccessible it automatically goes out of circulation and the total supply becomes limited, which translates into reduction in the circulating amount so also the same with other coins that offer periodic burns just like ethereum 2.0 forks where some percentage of the fees get burned to reduce the amount of supply.

[Pmalek]

Did you mean reduced supply?

The supply doesn't get reduced if you loss access to your coins due to misplaced private keys or mnemonic phrases. Whether those coins circulate or not, they are still there.

But when the coin become inaccessible it automatically goes out of circulation and the total supply becomes limited, which translates into reduction in the circulating amount so also the same with other coins that offer periodic burns just like ethereum 2.0 forks where some percentage of the fees get burned to reduce the amount of supply.

I remember reading a post sometime ago about the burning process of altcoins, more precisely the burning process in centralized systems. The idea is to positively affect the price by reducing the supply. But that only works if there is already a significant demand. A shitcoin with no traffic remains a shitcoin with no traffic even if you remove 10%, 20%, or 50% from its supply. For tokens like Ethereum, it probably has some effect.

The post I mentioned above, said that in centralized blockchains, even burned coins can be retrieved. The team/developers/foundation/whatever just changes the rules if they want to. They can do that because they are centralized, and they don't need the support of the entire economy (miners, nodes, exchanges, users...). 

[franky1]

market price is NOT determined on the near 19mill coins.
market price is NOT determined on the near 19mill coins minus any coins lost.

market price IS determined on few hundred thousand coins sat inside exchanges on an exchanges active order book.

more precisely the 0.xx coin market order that is active at the top of the spread determines the price in that second.

'supply' is about whats deposited in an exchange. not the entire near 19mill coins
it doesnt matter if all near 19mill coins have accessible privkeys for their owners to use or only 2mill coins do.
what matters and what affects the market price are the coins held by the exchanges. and the market order book amounts

[The Cryptovator]

I can't recall the thread exactly, but it has been discussed a few days back on this board. Those are losing Bitcoin by losing private keys or seed phrases, they are directly contributing to the Bitcoin network although it's unexpected. Circulation supply definitely reducing, means it helping to keep up the price. I know it's a pain who lost Bitcoin, it's an unrecoverable pain. But those who are active and holding Bitcoin are getting advantage of that. As much as reduce the total circulation supply the value of Bitcoin will increase. But please guys keep safe your private keys and seed phrase, we don't need really this kind of contribution.

[tbct_mt2]

Lost Bitcoin is only estimated by UTXOs but as estimation it can be inaccurate.

Bitcoin which was lost no matter how much it is, is gift for all of us, if we are holding Bitcoin. It is what satoshi mentioned years ago and it is proven to be true so far.

When time passes, more Bitcoin will be lost and it combines with bigger demand, you will have less Bitcoin for each people on Earth. Price will be higher as supply and demand and with support from social media. People will have more demand and more fomo to buy Bitcoin.

[Wiwo]

Lost Bitcoin is only estimated by UTXOs but as estimation it can be inaccurate.

Bitcoin which was lost no matter how much it is, is gift for all of us, if we are holding Bitcoin. It is what satoshi mentioned years ago and it is proven to be true so far.

When time passes, more Bitcoin will be lost and it combines with bigger demand, you will have less Bitcoin for each people on Earth. Price will be higher as supply and demand and with support from social media. People will have more demand and more fomo to buy Bitcoin.

Now that lost bitcoin is a donation to all the bitcoin holders, what is the possibility that it will ever get mined by minner is there any periodic forking that allows such unused Bitcoin to get into the unmined bitcoin.

[mk4]

Now that lost bitcoin is a donation to all the bitcoin holders, what is the possibility that it will ever get mined by minner is there any periodic forking that allows such unused Bitcoin to get into the unmined bitcoin.

I doubt such fork would pass, especially knowing the fact that there isn't even a way to know for sure if certain coins are actually "lost", or probably just the fact that the holder of said coins are just in it for the long long term. We've seen a good number of times addresses with like 9+ years old coins suddenly being moved.