Technically supply does diminish. People like to calculate the market cap of Bitcoin based on the theoretical amount of them in existence however people lose th

Technically supply does diminish. People like to calculate the market cap of Bitcoin based on the theoretical amount of them in existence however people lose their wallet.dat files all the time which contains the password allowing someone to send those bitcoins elsewhere. This causes deflation to occur on top of the regular limit on the amount of bitcoins. Tldr; Bitcoin is deflationary because math.