Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. In the context of crypto, this could be the cost of electricity.
In accounting, overhead refers to the ongoing business expenses not directly tied to creating a product or service. It is essentially the costs of running a business and can include things like rent, utilities, office supplies, and salaries of employees not involved in manufacturing. Overhead can also include costs associated with maintaining and securing a company's blockchain technology. For a crypto company, overhead might include expenses related to hardware, software, and cybersecurity to maintain its blockchain or digital asset infrastructure, as well as any legal or regulatory costs associated with maintaining compliance.
In a crypto mining operation, for example, the cost of electricity, mining equipment, and internet would be considered overhead.