Question:
I have read few posts of persons talking about losing their wallet's containing BTC and couldn't recover it at all. Hence, as people keep losing their BTC due to loss of wallet seed phrase, can it affect or cause a decline in BTC supply entirely?
Bitcoin total maximum supply 21M
Circulating supply 19.34M
If a wallet containing bitcoins is permanently lost or a wallet's private key/seed phase is destroyed or lost then the maximum supply will not change or have any effect but the total circulating supply will be affected and the lost bitcoins will be reduced from the circulating supply.
If Bitcoin wallets are lost and disappear and cross the circulating supply, the total supply of Bitcoin at some point will be greatly affected and the price of Bitcoin in the market will be greatly affected.