Cryptocurrencies are often described as disruptive, having the potential to revolutionize industries and overturn established monopolies. This generally overshadows one of their most important traits, however. Cryptocurrencies are inclusive and open to everyone. Not only will they change the current world order but they will also give ordinary citizens access to what was once reserved for the elite. We saw this with the way Bitcoin blazed a trail through the banking sector and opened up huge opportunities to the millions of unbanked people in the world. Brickblock is taking that innovation a step further and is placing real estate investment within the reach of anyone for the first time ever.
Real estate investment has always been a preserve of the rich. The barriers to entry are exceptionally high. A large cash sum or a generous line of credit, and often both, were necessary to get started in the property game. Even with that kind of money to hand, there was a mountain of red tape involved. Everything moved at a snail’s pace and for good reason, many different professionals were making a lot of money from investors at every stage of the process. A new approach was needed, to do away with the high initial cost of real estate investing while at the same time making the process more efficient and improving liquidity.
Brickblock identified an opportunity to completely change the way people invested in property forever, using blockchain technology and smart contracts. Rather than having to buy a property on their own, or invest in an expensive real estate fund, Brickblock allows investors to buy shares in properties using Ethereum. In return, investors receive PoA tokens, which legally entitle them to a share of the property’s revenue stream, proportional to their tokens. The beauty of this approach is that investors can choose to begin with small sums and, as the PoA token is tradeable on a secondary market, it is very liquid. This makes it ideal for small and first-time investors who may need or want to cash out their investment at short notice.
Brickblock offers investors a much wider choice of properties than a traditional fund. With no geographic limitations, a buyer in Brazil can invest in German properties effortlessly. In fact, as Brickblock take care of all the complex parts of the purchase and management of the properties and the whole platform runs on the Ethereum network, it is easier to invest with them than it is to open a simple savings account. The fees associated with a Brickblock real estate investment are substantially lower than the equivalent you would pay with a bank or a real estate fund. Fund transfers can be done within minutes and there are no third parties involved at each stage taking a cut and eroding your return. Ethereum has shown a lot of potentials not only as an investment vehicle but also as an assets register. Brickblock has implemented a well-thought application of these features in their real estate investments and it looks like they will set a new standard for how we invest in real estate in the future.
Find out more on the website: https://www.brickblock.io/