RCP. Real Capital

... what kind of Capital (CAP) is tied to real things?

Not all capital is 'real' in that it can be touched in the physical world.

Real Capital are physical thing and/or clearly identifiable things that can be characterized as capital.

Land is the initial example. Land can be bounded in two dimensions and it can produce rents.

A tractor is another real piece of capital. It can be used to produce crops or improve land.

Patents can also be real capital.

Potentially, encrypted digital assets could be considered real capital. This is up for debate and it may depend on the type of digital asset that is produced. For example, a domain name may be real capital while a digital share of stock may not be.

The difference of real capital and artificial capital will be discussed more in the ACP artificial capital chapter.

The characteristic of real capital that we want to focus on is that all forms of real capital degrade over time. Land must be invested in and made better. Patents expire. Tractors rust.


Some capital must be recognized as Real Capital and treated differently than artificial capital.

Ownership of real capital can be recorded in a Public Ledger (PLG).

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