well if you do thing wrong and slip up it might damage it but as long as you have 3 or 4 corners of the bill itll still work but over all there is a little chance of that.
i have done some reasearch and found that dollar bills are made out a woven matierial that can be dyed.
my grandpa has shown me how to do this when he was playing hand and foot (card game pretty fun)with my parents. i was amazed at how much it shrunk and i then showed it to everyone i saw when i had a dollar bill with me.
and with all these ahem, "wallet" instructables you can make it so you can fit 4 times as much money in your wallet :P
heres how to make it normal again: how to press dollar bills
and all you need 1 dollar bill
without further ado here it is