Bitcoin Deflation Principle: A large amount of Bitcoin has been lost in the past, and now a small amount is lost globally every day. If your cold wallet is accidentally lost, or if someone unexpectedly passes away, it can result in Bitcoin disappearing. Bitcoin may be permanently lost and cannot be traded again, thus, Bitcoin essentially becomes less. Many exchanges define accounts that have not been traded for over 5 years as likely belonging to individuals who have unexpectedly passed away or are incarcerated, and this portion of assets temporarily belongs to the exchange.