It’s not uncommon for savvy investors to find an investment that makes good sense, but is outside their financial wherewithal. This can be terribly frustrating, and leads to a hopeless ‘rich get richer’ mentality. Investors find themselves limited to low hanging fruit, unable to take advantage of opportunities that may produce far greater levels of income.
However, one company aims to create a way to deal with this issue:
MyBit has a business model that offers a blockchain solution, allowing buyers of their coins to buy and profit on investments in a decentralized way. The company has created a platform that allows investors to purchase portions of larger scale investments in machines or assets and profit from those. The machines or assets must be ‘connected’ – that is, connected to the internet. As the asset or product is used, MyBit investors receive immediate return on the rental or investment value of the product. Everything from solar panels that produce energy to connected cars and 3D printers have been purchased as assets and are profiting investors. As the company says, “With the rise of the upcoming machine economy, our vision is to have machines owned by people all over the world, rather than centralized parties maintaining ownership and the resulting revenue streams.” One such test case is real estate investment.
Traditional real estate investments
Real estate investments are traditionally seen as single buyer platforms. Large scale buyers can purchase apartments, land, or commercial property and rent them out for profit. Small scale investors are generally priced out of this market.
There are systems called REITs (Real Estate Investment Trusts), however, which allow for distributed or collated investments where a number of people can invest together into a single piece of property. REITs allow a number of smaller investors to purchase properties that would otherwise be outside their price range. The issue with this model is that profits are difficult to determine and are often far less, since the parent company takes a substantial cut before distribution. Profit distribution can also be very slow and cumbersome.
Further, real estate is traditionally not a ‘connected’ asset. It’s a physical asset (or ‘real asset’ – hence the name real estate) which has intrinsic value, but does not have a means of connectedness or digital distribution.
This is where MyBit aims to fill a niche in terms of its market space. The platform allows a group of investors, through their tokens, to purchase real estate. Investors would be able to use MyBit’s distributed ledger blockchain platform to invest in properties that would have otherwise been reserved only for large scale investment owners. This means that the traditional ‘parent company’ is eliminated and all profits from the investment are distributed through the blockchain to investors proportionally.
The issue of ‘connectedness’ is solved via smart door locks, which make it possible to track when the property is being used. A simple connected lock would allow the property to be rented, and the value of the rent to be immediately distributed at the time of the rental being taken. Should the tenant refuse to cooperate or pay, the lock could be shut down with a remote code, and the property would be safe until the next rental.
In this way, the investors would be paid the full profits of the property and would also have a system of connectedness that would protect the investment.
MyBit has created a system that allows investors an opportunity to profit over distributed blockchain systems. According to the company, “the power of this model is that, unlike a simple ICO, MyBit users are able to make immediate profits from their investment, while still having a built in profit from the company itself.”
The model aims to leverage the power of blockchain technology to provide an ability to distribute profits and value across a wide swath of investors. The MyBit ICO is currently underway and closes August 15th. After the ICO closes, the platform aims to be listed on various exchanges, susceptible to open market pricing. The company has already signed agreements in Germany and Dubai, and aims to continue growing.
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