Hoarding Fallacy

There is a theory that an increased level of hoarding produces an increased level of security in a coin. This is the similar to the Dumping Fallacy but is not necessarily based on a split.

An increase can only be described relative to some base level. If a person can be convinced that there is increased system security in a higher collective hoarding level, the theory holds that the person may decide to hoard more than would otherwise be optimal. This amounts to an actual individual cost with a presumed socialized benefit. In other words the theory depends on irrational economic behavior, even if the security benefit is actual.