Definition ∞ These are the expenses incurred in acquiring or developing long-term assets essential for an entity’s operations. They represent the outlay of funds for property, plant, equipment, or intangible assets that provide future economic benefits. Unlike operational expenses, capital costs are typically capitalized on the balance sheet and depreciated over their useful lives.
Context ∞ Discussions around capital costs in the digital asset space frequently pertain to the expenses associated with building and maintaining blockchain infrastructure, developing new protocols, or acquiring significant digital asset holdings. Analysts are assessing how these costs influence the economic viability and scalability of blockchain projects. Key considerations involve the upfront investment required for innovation versus the ongoing operational expenditures.
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