New Doubling Terminology

I decided to change some of the terminology I use in my doubling project. Instead of Current Balance or Balance I will use the terms Capital, Total Capital, Available Capital and Invested Capital. Total Capital will be calculated as:

Total Capital = Available Capital + Invested Capital

Available Capital is part of the Total Capital that is in the form of money, so it is available for investment. Invested Capital is part of the Total Capital that is already invested in assets that have potential to produce profit.

The goal of My Doubling Adventure is to increase the Total Capital of the project. Each Step will be considered as completed when the Total Capital reach certain determined level. So for current Step (Step 16) the objective is to increase the Total Capital to 3,200 HRK.

By making described changes in terminology it becomes more clear that the essence of doubling in general is the accumulation of capital.

Some interesting facts about the accumulation of capital can be found in the Wikipedia's article "Capital accumulation". Here are some interesting excerpts from that article that very nicely explains the essence of the accumulation of capital:

"...capital accumulation may be the accumulation of production capital (industrial assets), or the accumulation of money capital (financial assets), or the accumulation of commodity capital (products, real estate etc. which can be traded)."

"...irrespective of whether the additional capital value (or surplus-value) happens to take the form of profit, interest, rent, or some kind of tax impost or royalty income, what drives the accumulation process is the perpetual search for more surplus-value, for added value as such."

"Although capital accumulation does not necessarily require production, ultimately the basis for it is value-adding production which makes net additions to the stock of wealth. Capital can accumulate by shifting the ownership of assets from one place to another, but ultimately the total stock of assets must increase."

"Capital accumulation does not necessarily require trade either, although capital presupposes trade, and the ability to exchange goods for money. The reason is that wealth can be amassed through illegal or legalized expropriation (robbery, plunder, theft, piracy, slavery, embezzlement, fraud and so on). However, a continuous and cumulative accumulation process always presupposes that capital ownership is secure."

Very insightful indeed.

So, currently the status of my doubling capital is as follows:

Available Capital: 2,150.70 HRK
Invested Capital: 0.00 HRK
Total Capital: 2,150.70 HRK