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?
Firs of all, not every coin will go corrupt over hard drive like that. Most of the holdings are with the Satoshi (thats about 6-10% of the total supply) and thus huge bitcoin will still stay secured with him. Apart from this, most of the big mining farms have huge amount of bitcoins in their possession and surely these big companies have got things far more secured than the general user of the bitcoin. So may be, hypothetically there is very small % of bitcoin which might be getting lost forever from such things, that is hard drive corruption, lost keys and much more.