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In general I prefer 3rd person, because it allows you to get into the mindset of a number of different characters, not just the one who's telling the story. On the other hand, in some circumstances 1st person can be really effective. It can be really interesting to only get one person's perspective, and what they think the other characters are thinking and how they are reacting to certain things. In the right story, 1st person can work really well.
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