Why is a nickel worth less than a dime?
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well why exactly does our paper have any value? The value is just based on the number printed on it. People mock monopoly money and yet that is basically what we trade everyday, except its not exactly paper its linen and cotton…..
“Back in the old days (medieval times) a coin was worth exactly what it was worth: the weight and material had a specific worth/value. So a nickel, even though bigger in size, would be worth less than a dime, based on the material it’s made out of and it’s weight. An exaggerated (but accurate) example: iron coins would have been worth less than bronze coins. Bronze coins in turn less than silver. Silver less than gold.
Nowadays, we don’t use that system any longer, but the influence from when money was.. well… money is still seen in the way the coins are pressed.”
@ PJ: Neither are made with (predominantly) silver anymore.
Money isn’t fake…well, counterfit money is fake, legal tender is not.
“Money” as we know it is a fiat currency a.k.a it has no value itself, but represents the promise of value. Back in the old old days, a “bank note” (what we now call dollar bills) was literally a promise that the bank wrote to a customer telling them that exchanging the note would give them a certain weight in gold. The customer could then pass that note on to someone else, who in turn could trade with it or go take the gold.