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?
It can't affect cost of the entire supply, it will only reduce the circulating supply.
Those lost Bitcoin will no longer be in circulation but they will not be removed from the total supply.
Alright thanks for the clarification on the above question. @Nwada001.
In economics we are told following the law of demands and supply accordingly with the invisible hands of the market that when demands surpasses supply their will be increase in price. So if I may ask again, does this mean that the continuous loss of BTC in wallets which results to reduction in BTC circulation can lead to increments in the price of bitcoin or it doesn't work that way with bitcoin???
Yea, the law of Economics works also on Bitcoin.
According to Satoshi "All lost coin's is consider a donation to the betterment of other holders"