There will be a fixed number if Bitcoins, and people, because of human error, will accidentally lose Bitcoins every now and then.
This must mean that Bitcoin will eventually seize to exist? Or at least shrink to minimal amounts, when it shrinks to a certain level, it will no longer be useful.
Is this correct?
theoritically, if all bitcoin holder lose their wallet, bitcoin may be disappear but the truth is that it is not easy to hack all bitcoin holder's wallet. As we already known, bitcoin wallet have so many type, if you choose the safest one, they can not hack your wallet.