Crypto Glossary

Capital

Capital is most commonly defined as the large sum of money you would use to invest.

What Is Capital?

Capital is essentially wealth in the form of money or other assets that are owned by a person or organization, or simply available for purposes such as starting a company or even investing. Capital is most commonly defined as the large sum of money you would use to invest in order to make more money, and you can use capital to refer to buildings or even machines that are required to produce goods or to make companies a lot more efficient. Capital does not refer to money directly, but what you do with the money in order to get a return. 

The capital of a business, however, is the money it has available to pay for its everyday operations and to fund the future growth of the business. In this sphere, there are four main types of capital, such as working capital, debt, equity and trading capital.

Any debt capital is offset by a debt liability on the balance sheet, and the capital structure of a company determines which types of these it ends up using for its business. 

Bitcoin, as well as other digital currencies, are considered capital assets in a lot of countries, which means that they can potentially be taxed just like stocks are.

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