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# Cryptoeconomics
**by [Erik Voskuil](https://github.com/evoskuil).**\
**The book can be found on [GitHub](https://github.com/libbitcoin/libbitcoin-system/wiki/Cryptoeconomics).**
### Byproduct Mining Fallacy
- **Theory of Reduced Consumption**: Suggests mining with unmarketable energy byproducts (e.g., unused natural gas) reduces net energy use.
- **Market Dynamics**: Competition for byproducts increases their price, eliminating the initial cost advantage.
- **Increased Consumption**: Lower mining costs lead to more mining, increasing hash rate and thus energy consumption.
- **Market Energy Supply**: Monetizing waste increases marketable energy supply without raising production costs, potentially lowering market energy prices.
- **Production Expansion**: Lower energy prices might expand production, maintaining price stability.
- **Invalidation**: Theory fails as it doesn't reduce overall energy consumption; however, it might increase wealth through more efficient resource use.
The rest of the summarized chapters are at https://expatriotic.me