This mental model leads us to believe that we know what others are thinking, feeling, meaning, doing or any thing that is internal to them. Despite not having any reasonable or logical grounds for what we believe. This often affects how people think and feel about themselves - because they believe something about someone else. For example, someone might say or believe... "I know what they are thinking", "I know they don't like me", "I know everyone will look at me and judge me" etc.
Mind reading mastery is based totally on one's own assumption, which are often magnified by our own perceptions and sense of self. So people with low self-esteem, or people who are focused on their looks and outer appearance are more likely to mind read and base how they feel about themselves on what they think others are thinking and feeling. The more we realise how less people think about us the more we stop thinking about much they do.
Mindreading has it's uses, especially in specific professions who use their communication skills to confirm assumptions e.g. therapy. It is useful to check our personal assumptions to see if they are real or based on our mind reads.