_Good Morning_ ☕ 📖 🌞
### Consolidation Principle
- **Consolidation Principle**: The need to exchange between coins to trade with merchants incurs a cost, making one coin with higher utility preferable over two.
- **Utility**: One coin is always better than two unless the resulting coin becomes fee-bound, as per the utility threshold.
- **Thiers' Law**: In the absence of state controls, the better money will eventually replace the other, leading to consolidation.
- **Market Pressure**: There's a natural market pressure towards a single coin, though this doesn't prevent the creation or existence of new coins over time.
- **Contextual Utility**: The utility of a money can vary by situation; for example, gold isn't useful for electronic transfers, and bitcoin needs a network to be functional. The better money prevails in scenarios where it excels.
**Cryptoeconomics by [Erik Voskuil](https://github.com/evoskuil).**
*The book can be found on [GitHub](https://github.com/libbitcoin/libbitcoin-system/wiki/Cryptoeconomics).*
The rest of the summarized chapters are at https://expatriotic.me