Hello, my first post to reddit, big fan of bitcoin but just wanted to discuss a concern I have.
It is thought that 80% of bitcoin supply is held in lost wallets. This statistic does assume that some wallets that haven't traded in a long time are lost, when they might not be.
Nevertheless the reality is that a substantial amount of bitcoin has been lost, never to be recovered. With a cap of 21 million coins and a substantial loss of up to 80% in only 14 years of existence, surely this will prevent mass adoption and use as currency.
Over the years to come more will be lost though various means, so eventually supply would become so restricted that someone trading even a moderate amount of coins would cause massive price fluctuations surely? People couldn't use this as an everyday currency if prices of everyday items changed massively hourly or daily.
I'd like to hear some positive news that this is not the fate of bitcoin in the future? Is there any solution or have I worked this out wrong?