Thank you cocqui 33, I have added that link to my Evernote for permanent reference.
OK, so I have a follow on question: when bitcoin gets lost like that, or when it gets seized by a government, as recently happened in the news, like this:
https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX, what happens to it in the long run? Is it forever out of circulation?
It is forever out of circulation only when someone loose private key (access to the Bitcoin addresses)