When a user loses his wallet, it has the effect of removing money out of circulation. Lost bitcoins still remain in the block chain just like any other bitcoins. However, lost bitcoins remain dormant forever because there is no way for anybody to find the private key(s) that would allow them to be spent again. Because of the law of supply and demand, when fewer bitcoins are available, the ones that are left will be in higher demand and increase in value to compensate.
Articles in this section
- What is Bitcoin?
- Why do people trust Bitcoin?
- Who created Bitcoin?
- Who controls the Bitcoin network?
- How does Bitcoin work?
- Is Bitcoin really used by people?
- What are the advantages of Bitcoin?
- What happens when bitcoins are lost?
- Is Bitcoin anonymous?
- Is Bitcoin fully virtual and immaterial?