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Glossary

Wealth

1 min read

Wealth is the value of assets held by a person or company at a given point in time. Wealth is an important metric because it measures the accumulation of scarce resources. Wealth is different from income; income is a measure of the money received by an entity as payment for goods or services provided, whereas wealth is the total value of assets held presently by that entity. Bitcoin held by an individual is one asset that factors into their wealth.

Related Terms
Liquidity
Liquidity is a measure of how easily an asset can be traded on financial markets. The depth of an order book is often cited as a measure of liquidity.
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Debt
Debt is a financial obligation from one party to another. The debt obligation of a company is a major factor in the overall solvency of a company.
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Cantillon Effect
The Cantillon Effect explains how inflation has uneven effects on the economy. Learn how new money benefits early recipients and alters the purchasing power.
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Inflation
Inflation is a general increase in the price of goods and services in an economy over time. Inflation is primarily due to a constant increase in the monetary base by the local government or central bank.
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