Quote from: overseerio on December 06, 2013, 12:24:09 AM

Quote from: kernels10 on December 05, 2013, 11:31:54 PM

Quote from: overseerio on December 05, 2013, 10:34:16 PM

Quote from: kernels10 on December 05, 2013, 10:29:15 PM

I'm guessing there's no way to know how many have been "lost"?
If that's true, then couldn't anyone claim loosing a large number of coins to inflate prices?

The only coins that affect prices are the ones being actively traded (the effective "supply"). Coins that are not in circulation (either in "lost" wallets or just being held) do not really have a significant effect.

Edit: The coins not in circulation don't affect supply (and therefore price) until they are brought back in. Although it's possible that the risk of these coins coming back can decrease prices slightly, I doubt traders are thinking about that fact right now, so its effects are probably negligible.

I guess so, but with there being a finite number of BTC, wouldn't the "value" increase regardless of whether the coins are in circulation or not?

Although, if there's no way prove the actual "loss", then you are right. And, as the prices rise and interest in BitCoin increases, the number of "lost" coins relative to the amount mined should (theoretically) decrease. Thus, reducing their [the "lost" coins] impact on market even further.
I could be completely wrong heh, so please correct me if I am Tongue

I think in a perfectly efficient market, you're right -- knowing if coins are lost or just being held would affect the price since it impacts overall supply. However, traders right now don't seem to be considering these factors at all; they instead care most about making a profit which results in the huge price rollercoasters that happen each day. Eventually, the lost coins may start to matter -- but not for a while!

+1

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