The practical answer is that yes, the bitcoins are lost.
But they're not, not really. There is the miniscule chance that some time before the heat death of the universe, a collision would be generated, and someone makes the same private key. This would result in those bitcoins popping up in their wallet. Think of it as the digital equivalent of finding a $5.00 bill in your pocket when pulling your jacket out of summer storage, except that in the meantime, it's turned into a $100.
Topic: Can bitcoins be lost? - page 3. (Read 3030 times)
As long as the software is updated to add more zeros after the decimal, there's a good chance bitcoins can surivice just fine on a fraction of a BTC. In any case there is a long way to go before that happens. Anyway, the chances that it will be a problem are probably about the same as running out of coins and dollar bills, if it happens there are bigger problems to deal with.
Ok, so I guess, bitcoin has a limited lifespan even in the best-case scenario. After the 21 mil will be generated, it will be only a matter of time, before bitcoins will become too rare to be practical. It could take decades, but it's inevitable.
Yup, they're simply lost forever. Can't really see how you could ever determine which coins are lost and which ones are stored in a "treasure chest wallet", even after years and years of noone touching them. So the maximum 21 million number is really theoretical and the number of Bitcoins in actual use will start declining eventually I guess.
When they're lost (deleted wallet.dat for instance), they're gone forever. No, the coins are not "recycled" back or anything (which would be EXTREMELY bad for users that just keep a wallet around, inactive, for many years). The total pool of bitcoins is decreased and the ones that are still around gain value (deflation). This is completely by design in the system.
Perhaps after a 5 year period, all accounts that have not been in use can be wiped and a short mining period can commence.
Seems like a reasonable way, but is there actually a way to check this?
well if you lose your walet.dat and redownload the program on a new pc you would get a new id so yea im guessing you would lose your coins but they might have a failsafe that if a id has not been contacted in a long time the coins get recyed back into the system im not sure.
Perhaps after a 5 year period, all accounts that have not been in use can be wiped and a short mining period can commence.
Hi everyone.
Hello!
I would like to know, if there are some mistakes in my theory
You've pretty much nailed it.
and if no, is there a way to compensate for the loss of coins?
In practicality, they're gone. Lost forever along with the private key.
Cheers,
Kermee
OMG!!! I was going to post exactly this right now. 
Hi everyone. I have been thinking about BTC a lot lately and I've spotted an interesting problem.
Suppose, we have a not too bright newbie, who has started mining for bitcoin in a pool, had got something about 1-2 BTC and did not back up his wallet.
Now, suppose that something happens with said newbie's computer and his hdd gets damaged beyond repair. This leads to him losing his wallet and the bitcoins, as I understand.
The blame for loss is on the newbie, naturally, but this situation also is a problem for the whole bitcoin-community, because the bitcoins are not only lost for the newbie, but they are lost from the system as well. And as the system is programmed to have no more than 21 million bitcoins ever generated, active use of bitcoins will make situations like the one I described, inevitable and will mean, that the number of bitcoins will slowly decrease over time.
I would like to know, if there are some mistakes in my theory, and if no, is there a way to compensate for the loss of coins?
Suppose, we have a not too bright newbie, who has started mining for bitcoin in a pool, had got something about 1-2 BTC and did not back up his wallet.
Now, suppose that something happens with said newbie's computer and his hdd gets damaged beyond repair. This leads to him losing his wallet and the bitcoins, as I understand.
The blame for loss is on the newbie, naturally, but this situation also is a problem for the whole bitcoin-community, because the bitcoins are not only lost for the newbie, but they are lost from the system as well. And as the system is programmed to have no more than 21 million bitcoins ever generated, active use of bitcoins will make situations like the one I described, inevitable and will mean, that the number of bitcoins will slowly decrease over time.
I would like to know, if there are some mistakes in my theory, and if no, is there a way to compensate for the loss of coins?
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