What happens to the value of a $100 bill if the bill itself is destroyed?

Question

Is the value dispersed evenly amongst all the other currency is circulation?

In: 1

Answer 1

There is enough money in circulation that a single $100 bill being destroyed would have no noticeable effect on the value of the dollar. $100 is barely a drop in the bucket compared to the amount of money banks move in even a single day. On the national scale, it would mean nothing.

Answer 2

If you can prove the destruction and provide the tattered remnants of the bill, the US treasury will reissue it to you.

Otherwise your net worth decreases by $100.

This will indeed have a negligible deflationary effect on the currency.