On: Bad code may be to blame for $500M of cryptocurrency losses in seven months

[rulum]

And that is exactly what you don't want in "money" in a functional economy. You don't want deflation. You want price stability.

So the more it gets artificially valuable, the more useless it becomes for its intended purpose.

[dlwdlw → rulum]

It is valuable as a store of value though. Either pure like gold, or tied to something more like assets. USD is a bit strange because it is both a store of value used by many countries as well as a currency. there is an implicit peg to oil though. So the the price of oil is something fairly important to the US.

[gamblor956 → dlwdlw]

The USD is a currency. Due to its stability, it is also used as a store of value by foreign countries.

Oil is pegged to the dollar. The price of oil is relevant because of its effects on prices, not the dollar.

[dragonwriter → gamblor956]

> Oil is pegged to the dollar.

Oil producers may target a dollar price and trade in dollars, but oil is not pegged (that is: trading with a fixed exchange rate) to the dollar.