Those are assets, not capital. Capital is pieces of paper representing ownership of ownership of assets. Its twice removed from assets. Money, or currency is only once removed. The confusing part is they are assigned a value that uses the same denomination as currency.
But you could argue when currency is no longer backed by an asset like gold, it also becomes capital.
Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual.
So the property, buildings, factories, etc are fake… But the little slips of paper the government issues is real?
Those are assets, not capital. Capital is pieces of paper representing ownership of ownership of assets. Its twice removed from assets. Money, or currency is only once removed. The confusing part is they are assigned a value that uses the same denomination as currency.
But you could argue when currency is no longer backed by an asset like gold, it also becomes capital.