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Will Bitcoins Be Lost Out Of Circulation Due To People Losing Wallets?

If for some reason a person loses their wallet files, then the Bitcoins are effectively taken out of circulation. If many people lose their Bitcoin wallets, there would be a deflationary effect on the Bitcoin economy. Bitcoins are easily divisible.  Because of this, it would not impact the ability for the network to function. Even if 90% of Bitcoins were lost or destroyed there would be a remaining 2.1 million “whole” Bitcoins in circulation. The Bitcoin network supports transactions down to one satoshi (0.00000001 BTC) which is 210 trillion discrete units of exchange.

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