What happens to bitcoins when people die. my bank account (if I had one) could be divied out by my will. as would stock etc. if someone dies sitting on millions of dollars in bitcoin and doesn't pass on the password?
Same thing that happens when someone buries a bar of gold someplace random and then dies before telling anyone where. It's very likely never going to be seen again.
Except buried gold is found / find-able I think bitcoin's shrink will at some point be its ending.
Passwords and lost hard drives can be found too. I'm not seeing a real difference here.
Tut's gold was lost (from the economy) from 1323 BC to 1922 AD.
would a thumb drive or password last that long? Lost bitcoin is essentially lost forever.
In this interview the founder of Coinbase talks about that very problem and about how it's a feature they plan to implement.