The effect of deflation is abnormal increase in price which can cause Bitcoin to be overpriced in the future. My question is what do you think will be the adoption and usage rate of Bitcoin then, whether it will increase or decrease?
But the question is: what will keep making people lose access to their wallets? Won't they learn how to protect their assets? And if such things keep reoccurring, do you think the common people who will want to start using bitcoin will feel safe holding it?
I think it is ignorance that makes people lose interest in keeping their access to their Bitcoin safe. Such persons won't say that they do not know about the importance of keeping their keys safe and how to do that, yet they still make mistakes, and the worst part is in this present generation where knowledge and resources are available in the interest. It's not like they need any personal guidance or tutor to guide them through the part.
Anyone going into Bitcoin is a personal choice no one is willing to take responsibility for anyone just because they introduced them to Bitcoin. Keeping our assets safe is personal so getting the knowledge first of how to store our coin is good.