_Good Morning_\
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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).**
### Causation Fallacy
- **Theory of Mining Following Price**: Suggests mining activity is dictated by historical price or reward value, implying miners lack influence over coin utility.
- **Initial Miner's Dilemma**: The first miner cannot rely on historical data; they must anticipate future returns, embodying entrepreneurial risk.
- **Predicting Future Value**: Miners can't accurately predict future reward values using historical data, as this would imply either static or unpredictable prices.
- **Market Dynamics**: Overestimation or underestimation of reward value leads to losses. Market competition pressures these errors towards elimination, but unpredictability prevents perfect alignment.
- **Production and Consumption**: Mining anticipates future demand, not reacting to historical data, creating the opportunity for consumption.
- **Miner's Role in Price**: Miners contribute to demand but don't set prices independently; their impact is similar to any other market participant with equivalent demand.
- **Asymmetry in Market**: Miners must anticipate demand and risk before transactions occur, highlighting that production must precede consumption, not the other way around.
The rest of the summarized chapters are at https://expatriotic.me