What Makes A 1 Dollar Bill Worth More Than A 100 Dollar Bill?

To put it simple, 100 dollar bill is worth more is because it can exchange more things than a 1 dollar bill. You may ask why, again, if we are just told that 100 dollar bill worth more, if everyone believes that 100 dollar bill worth more than a 1 dollar bill, then it does worth more, at least that would be what everyone will be telling you. Well, it is possible to make 1 dollar bill worth more than 100 dollar bill if you encounter someone who would not accept 100 dollars but just accept 1 dollar. In this case 1 dollar worth more because 1 dollar can actually buy something but 100 dollars can't.

When money first appeared it had the advantage you can carry your fortune with you, unlike the merchandise which was quite heavy to carry around. Money was initially made of gold, silver and other precious material that reflected its actual value...I mean you could give the money to a blacksmith and he could make jewelry out of it. At some point, when money became very popular, they started making deposits in banks...they gave gold and silver and they got pieces of paper in exchange that specified the value of the deposit of precious material people had stored. And after some more time people began exchanging these papers instead of moving the whole metal from one bank to another. Those pieces of paper became the money we use today. Only the figure on the paper bill is a value itself...Money became so popular that it didn't need a "back-up" of precious material anymore. Considering this short history, the material out of which money is made of is only meant to ensure its durability... and as much as possible restricts people from multiplying them easily. The paper money is made of has a special composition that can be manufactured only by several controlled institutions.

The cost to print is the same, four cents. It is the number printed on it. Ideally it should be the amount backed up by gold. But we do not have that anymore, now it is based on how much is printed. Our dollar is going to be worth less than four cents very soon.

Hi, gewcew! It's all simply a social contract to which we have agreed. There is no intrinsic difference at all!

Our society has agreed upon these amounts. That is the beautiful power of money, which is definitely more convenient than the cumbersome method of bartering.

It is worth more because the government assures that it is worth more. In the place where you live, it is accepted as a form of currency; it is accepted that the 100 dollar bill can get you more than the 1 dollar bill. They are the same material, yes, but the government puts more value into the hundred dollar bill. As long as they say, "This piece of paper with a larger number holds more value than the smaller number," then it will be worth more. So it basically is just the people who are in charge who get to decide the value.

I suppose that my answer to that is that the thing that makes a 100 dollar bill worth more than a dollar bill is the same thing that makes the 1 dollar bill worth a dollar. Instrinsically both have the same value (the value of the material and the ink). It is our belief that a dollar has a certain value and that the 100 dollar bill has a value that is 100 times more.