May 28th, 2025
0
I’ve just conceptualized such a coin of which is still in circulation and legal tender but is worth LESS than its face value. Let’s say it is a quarter so eroded that a merchant is only willing to accept it as 20 cents rather than 25. This decrease in value of 5 cents from the face value makes the coin very unique as the only 20 cent coin in existence, and then because of the rarity, it’s value skyrockets to collectors. Because the merchant made such a devaluation, they paradoxically CREATED value.
Such a coin probably only exists in theory, but if it did, the implications could be dire for the economy?
May 28th, 2025
0
4
2
1
1
8
This is already how it is and why most merchants, would prefer debit cards, and some refuse cash entirely requiring it be added to a special "like cash" card.
Because of frictional costs cash is absolutely worth slightly less than face value - it's worth something less than face value and more than Coinstar value.
2