When will we hit a critical point at which there's just too many lost bitcoins due to someone loosing their wallets, dying or corrupted hard drives and etc? At some point this is bound to happen right?
I know that for the time being, low circulating supply means that the coin will increase in value but how low can it get before it starts to give diminishing returns and actually inflict damage to the system? What would happen to crypto in general if all of the coins and altcoins will suffer the same ending?
That is never going to happen, if most coins disappear from circulation then that just means that the rest of the coins get more valuable, this is something that is happening to silver right now, silver is a great metal to create a currency but it is also one of the most useful metals out there that can be used for everything and slowly the silver reserves are going down when people realize this silver will become extremely valuable, and besides it is not like we can know if some coins are lost or just have not been moved for a long time.