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1  Other / Beginners & Help / Simple Economics? on: June 09, 2013, 05:19:16 PM
I always hear that when stock prices are crashing, not to panic, but it seems counterntuitive to me. I realized why... its a simple prisoners dilemma. The police arrest two people commiting a crime together. If neither one talks, both will get a better deal, but if one talks, he will get an EVEN better deal while the other is left to rot. Keeping your money in is better for the group unless others choose to capitalize on the slowing declne by getting their money out. The problem of course is that its not just two prisoners, but thousands. Ive withdrawn my money, figuring that i can just put it back in if prices go back up, and id only lose a fraction of a penny on the dollar due to the slow increase in BTC price, where as if the price contnues to sink and i get out quick, i can buy back more BTC than i lost. When the price goes back up... huge profit... thoughts?
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