That simply divides the bitcoins up into smaller portions. Every bitcoin that is lost, is gone for good and simply reduces the amount of bitcoins there will ever be.
If you make all other BTC worth more and they are divided up into smaller pieces, the net result is no change long-term. You're not hurting anything. You're only helping us out in the short-term.
Ok. Have 10 people and 10 pies. We give everyone a pie.
Now 8 pies get lost. Some get eaten, one pie was encrypted and the key got lost, another one's fridge was hacked and his pie deleted, a pie was dropped on the floor, etc etc.
We divide every remaining pie into 10 pieces. One guy didn't lose his pie, he gets to keep all 10 pieces. The other 10 pieces are divided evenly over the other 9 people and piece gets destroyed by me, just cos I can. And pie makes me fat.
We have 10 times as many "items of pie". We performed a digit shift on the pie basically... Yet now one guy has half of all items of pie available, while he only had 1/10 earlier.
Still think shifting the digit will solve bitcoins getting lost?
