Irrespective of rank I believe am still learning in gradual steps about bitcoin and therefore have this question to ask, it would be of good consequence for me if am well enlightened on this particular subject about bitcoin. So just in case, someone I might want to talk to about bitcoin for the very first time happens to ask me I can comfortably address it too.
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 has a limited maximum supply and a constantly changing circulating supply, and any potential loss of someone's funds which involves the corresponding loss of private keys can be considered as a decrease in available supply, but the maximum supply of Bitcoin stays nearly the same. In order to decrease the total supply, coins need to be "burned" or destroyed in a provable way, which means it will be impossible to restore such coins even by finding private keys. There are many approaches to destroying coins in a provable way, but it is a rare occurrence that this happens naturally due to mistakes. Most often than not, people who want to burn their coins know what they are doing: they destroy their coins on purpose to achieve some goal that they see as more important thing than valuable coins.