Crypto Terms: Letter C

What is Capital?

Capital MEANING:
Capital - a large sum of money used for an investment.
1 minute

Let's find out Capital meaning, definition in crypto, what is Capital, and all other detailed facts.

In finance, capital is the money or assets owned by a person or organization that are used with the intention of investing or starting a business. It is commonly referred to as the large sum of money used for investment, as a means to make a bigger profit. Capital can refer to a number of assets, including money, stocks, physical buildings, or production tools.

Capital does not directly mean money. The intended meaning is related to what is done with the money to generate a profit. In the context of a business, capital can refer to the money used to cover the daily operations and fund the overall current and prospective processes of the company.

There are four main types of capital in the business scenario:

  • Working capital
  • Debt
  • Equity
  • Trading capital

Debt liability can offset all debt capital on the balance sheet. It is down to the company’s structure to determine which data is used for the business.

An increasing number of countries see digital currencies like Bitcoin (BTC) or Tether (USDT) as capital assets. This means that digital assets may be taxed like stocks, although this may vary depending on the national regulations.