Blood is produced is your bone marrow. There, you have special cells called Hemapoetic Stem Cells which, when they divide, produce one Hemapoetic Stem Cell and one blood cell. It can take days or weeks to fully replenish your blood after you lose a large amount, hence why most blood banks only allow you to donate every couple of months.
If you lose too much blood, your bone marrow can’t keep up and your tissues will start dying as they aren’t getting enough oxygen (with the brain being one of the first to go). In this case you basically experience total system failure and die.
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