4 ms·

This is a really interesting perspective ... though, I'm sure it could be argued that, "it only makes them more rare, and thus valuable!!11!1!" ;)

• rulum 9y ago
  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 9y ago
    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 9y ago
      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 9y ago
        > 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.