[bodge5000]

> Things become worth more as they become scarecer, not less.

It's a bit more nuanced than that. Generally speaking, in society as we know it, there's a point at which something becomes so scarce that it's value begins to drop because there's simply no use for it and no reason to find a use for it.

The second part to this is that scarcity-based value is a product of our current society, and we're describing a society that diverges from that. This could go in many different ways, some that could well be a massive improvement to what we currently have, but for the sake of this argument, imagine everything goes very badly and people are starving to death. Would you trade a weeks worth of food for a diamond?

[fwipsy]

If money remains backed by AI goods and services, it will remain valuable no matter how scare it gets.

Scarcity raising prices is a fundamental law of economics. Your diamond example is just swapping which goods are scarce.

[bodge5000]

> If money remains backed by AI goods and services

Why do you think it would? If 99% of people never use those services, why do you expect they'd continue to exist? Just to justify the existence of some temporary class of worker to provide services that, for some reason, aren't fulfilled by the AI?

> Your diamond example is just swapping which goods are scarce.

Not at all. If you're starving and someone offers you the last diamond in the world for a weeks worth of food, its unlikely to be a worthwhile trade since without the food you'd die, and then (to you), the diamond is entirely worthless. Scarcity raising prices is a fundamental law of our current economic system, its not a fundamental law of reality