What happens if someone loses their bitcoin? Let's imagine that I buy 10,000,000 bitcoin for example. Does the system need to re-create those money?
There's nothing like 're-creating' new bitcoins. Once they are lost, they'll be gone for good. Chainalysis(digital forensics firm) estimates that around 4million bitcoins have so far completely disappeared (out of circulation) and this is based on a detailed empirical analysis of the blockchain.