Transfer of loss

I have been wanting to make this post for some time now.

When a person begins using counterfeits, they tend to transfer the lost value of that illegal tender from one person to another. What if the person using the money to pay products and services does not know the money he pays is fake? And what if the person receiving the money does not kwow this fact as well?

What results is a transfer of loss of value.

If I have a 100 peso bill and I use it to pay 100 pesos worth of products whose net value is 90 pesos, I give the vendor an income loss of 10 pesos and an asset loss of 90 pesos.

If that vendor then uses the fake 100 peso bill to give change to a customer, the vendor transfers the 100 peso loss of value to the customer.

This goes on and on and on until someone discovers that the bill is fake.

But the loss will not end there.

The last owner of the bill when it was rejected finds out that the bill is fake, that person will just keep the bill, keep the knowledge to himself and probably use the bill to pay another vendor or person and so the cycle continues.

In this manner, as more and more counterfeit are injected into the monetary system, the loss of value increases.

And by sheer chance that all legal tender are lost or destroyed and only counterfeit money circulates, that is the time when loss of value is cancelled out. By that time, the counterfeit money will have value equivalent to the legel tender it represents. Nobody else will claim a fake money is fake because everyone will be using fake money. And fake money is cheaper to produce than real money.

So, how about it, will we replace all the money that we have with those that are fake because the fakes can be used to pay for a value it represents and cost our central banks less?

You decide...