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?
Yes, obviously there will be an effect, but I think the effect will be positive, and it will be beneficial for Bitcoiners.
Now let me tell you how it will be, the total supply of Bitcoin is only 21m and
The circulating supply is about 19.34M, Although all bitcoins in lost wallets are currently included in the circulating supply, there will be a time when they will be included in the total supply after 21m bitcoins are mined, and then from the total supply, these bitcoins will be like burning or decreasing supply and there will be a positive effect on the price.
To say this, I would say that those who have lost their wallet private keys are benefiting other bitcoiners by holding bitcoins for life.