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?
No if that bitcoin loss it will remain loss no one can create a duplicate of that bitcoin, there are close to 5% that are already loss and will forgotten for ever, those bitcoin are loss for some reasons: bitcoin already burn from some external, losses their paper wallets and the owner of some bitcoin already dead.