initial coin offerings (ICOs)</strong></a>. Google has not stopped prohibiting crypto trading and mining applications that do not follow its set of guidelines.</p>\n<p>The crypto applications that Google does allow though are <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance</strong></a>, STEX, and CoinMarketCap.</p>\n<p>Another example would be when China banned crypto mining in its country, in May 2021. They stated that the reason behind this decision was the lack of security that would prevent manipulation which can lead to big losses for crypto investors and a lack of support value.</p>\n<p>The ban was very influential to Bitcoin since it fell from its <strong>all-time high</strong> of approximately $65,000 to somewhere around $28,000. In August of 2021 Bitcoin reached $50,000 yet again.</p>\n<p> The most common purposes of censorship are:</p>\n<ul>\n<li>To manage offensive content</li>\n<li>To protect children</li>\n<li>To ban child pornography</li>\n<li>To help prevent slavery</li>\n<li>To discourage the use of offensive language</li>\n<li>To restrain or encourage political or religious views</li>\n</ul>\n<p>Self-censorship refers to the way an individual creates some kind of media and participates in censorship of their works or statements.</p>","level":"medium","meta_title":"What is Censorship? Definition & Meaning | Crypto Wiki","meta_description":"Censorship meaning: Censorship - is the suppression of written or spoken language or media that is harmful to the public.","meta_keywords":null,"language":"en","created_at":"2022-02-21T14:02:43.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-censorship"},"prevSection":{"id":147,"original_id":null,"author_id":40,"translator_id":null,"title":"Who is Cathie Wood?","slug":"who-is-cathie-wood","section":"C","keyword":"Cathie Wood","status":"published","definition":"Catherine Wood is the founder of ARK Invest.","content":"<p>Catherine Duddy Wood was born on November 26th, 1955, and is an American investor, as well as the founder and CEO of <strong>ARK Invest.</strong> Ark Invest is a $60 billion company that specializes in cutting-edge technology such as self-driving cars and genomics. </p>\n<p>She had previously worked at other investment businesses and planned to amass active stock portfolios in the form of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-exchange-traded-fund-etf/">ETFs./nIn 1974, Wood graduated from an all-girls Catholic high school and then studied finance and economics at the University of Southern California. She gained a Science Bachelor's degree.</p>\n<p>Cathie Wood was mostly unknown prior to the year 2020. However, not long after, she rose to prominence as a stock market investor. Despite the fact that Cathie Wood encountered significant instabilities for the ARK Innovation ETF and other ARK Invest exchange-traded funds last year, many investors see her as an inspiration.</p>\n<p>Investors say that Cathie Wood has a talent for the creations which will define high-growth funds to invest in for years to come.</p>\n<p>Moreover, she is a <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">Bitcoin supporter and has been purchasing Bitcoin proxies from <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/coinbase/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Coinbase</strong></a>, Grayscale Bitcoin Trust, and others, since she wants to be the owner of the assets.</p>\n<p>She recently indicated that the technology businesses in her development portfolio are substantially undervalued, and she believes that the latest sell-off in her fund is temporary.</p>\n<p>As the SEC filing reveals, the ETF’s investing aim is to follow the performance of Bitcoin. Besides, if SEC confirms the fund, it will trade under the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-ticker-symbol/">ticker symbol</strong></a> “ARKB”. Moreover, Ark Invest is launching a Bitcoin exchange-traded fund.</p>\n<p>Furthermore, when <strong>China banned Bitcoin in June</strong>, Wood referred to it as an advantageous move in the long run, while other analysts described it as a bad thing for the crypto industry. Cathie Wood even stated that Bitcoin is \"environmentally conscious,\" in response to Elon Musk's (the owner of Tesla and SpaceX) criticism of Bitcoin mining's energy use.</p>\n<p>Besides that, Cathie Wood stated that Bitcoin is transparent and has promoted economic development all across the world. It is also stated that when mining changes to sustainable power, Bitcoin would be beneficial to the world and ecology.</p>\n<p>Her organization, ARK Invest, teaches people how to successfully invest in cryptocurrencies. The organization believes that cryptocurrencies governed by network systems would shape the future of monetary systems, value holding, and transfer techniques.</p>\n<p>According to the investment manager, parameters such as the worth and market share of cryptocurrencies will be <strong>\"power-law distributed.\"</strong> This implies that just a few cryptocurrencies would be able to capture the biggest share out there.</p>","level":"medium","meta_title":"Who is Cathie Wood? Definition & Meaning | Crypto Wiki","meta_description":"Cathie Wood meaning: Cathie Wood - Catherine Wood is the founder of ARK Invest.","meta_keywords":null,"language":"en","created_at":"2022-02-21T13:54:40.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/who-is-cathie-wood"},"currentChapter":"C","currentSection":"what-is-capital-efficiency","chapterTitle":"C","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-capital-efficiency","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0"> Crypto Terms: Letter C
What is Capital Efficiency?
Capital Efficiency MEANING:
Capital Efficiency -
a ratio between a company’s revenue spending and returns made as profit.
Let's find out Capital Efficiency meaning, definition in crypto,
what is Capital Efficiency,
and all other detailed facts.
Capital efficiency describes the ratio between a company’s spending on the growing revenue and the returns made as profits. For example, if a company earns $1 for every $1 spent, the capital efficiency ratio is 1:1.
A higher ratio shows that a company is capital-efficient and making a profit. Capital efficiency is important for companies, particularly startups, as it allows them to analyze which expenses could be cut without negatively impacting the quality of operations. Companies may struggle to raise funds if their expenses are too big given their growth.
Capital efficiency in the crypto world is seen to be more effective when companies use digital assets rather than fiat money. Crypto assets are typically cheaper to utilize and maintain than fiat given the scaling costs that are prominent in the industry, particularly as companies aim to grow on a global scale.
Making sure that the capital efficiency ratio is always backed by an asset 1:1 can be one of the biggest challenges, whether the asset in question is digital or fiat.
Stablecoins, cryptocurrencies that are pegged to a set value of an asset like gold or the US dollar, can experience difficulties with capital efficiency. Stablecoin assets like Tether (USDT) may require larger amounts of collateral backing, the more of it is purchased, causing capital inefficiency.
The capital efficiency ratio is positively affected by blockchain-based decentralized finance (DeFi) innovations. Unlike Tether, which is pegged to the value of the USD, collaterally- or algorithmically-backed stablecoins only require a percentage of the whole supply to have collateral backing.
In the case of collaterally-backed and algorithmically-backed stablecoins, a $1 peg may only require to have 80% fiat stablecoin backing, thus making the capital efficiency 20% higher.
