“One way to think about ‘value’ is through the lens of costs. The basic principle is that markets allocate value along the lines of costs as they trend to equilibrium. So we can estimate the overall behavior of future value by studying its associated cost structure. To establish this logic we’ll review some fundamental principles of economics (based on equilibrium and MB=MC) and piece apart what we mean by ‘costs’. Then we’ll apply this insight to reason about the nature of value capture and investment returns in crypto.”