MyBit: Invest in the Internet of Things (IoT)
The IoT connects everyday items such as refrigerators, heating and air systems, home security systems and more to a wireless network via sensors, software, and embedded chips. According to Nasdaq, this market could reach up to $1.7 trillion by the year 2020.
“As far as the reach of the Internet of Things, there are more than 12 billion devices that can currently connect to the Internet, and researchers at IDC estimate that by 2020 there will be 26 times more connected things than people.”
The current way to invest in this technology is a traditional exchange-traded fund (ETF). This way you can invest in many major companies as a whole such as Apple, IBM, Cisco and more. While this is great, using brokers and traditional trading brokers is expensive and cumbersome.
Intro to MyBit
MyBit is bringing IoT investing to the blockchain by allowing people to invest via an Ethereum smart contract. This cuts out the middleman, brokers, and empowers people to invest directly into IoT driven machines of the future. MyBit is a decentralized IoT crowdfunding investment platform that will produce residual income for MyBit token holders. Also, by crowdfunding IoT items, the owner of the item incurs less financial responsibility and can purchase items they may not have been able to previously. Investors will receive a profit proportionate to their ownership stake. MyBit enables ownership of a specific IoT asset to be easily distributed among several owners (investors). This allows smaller investors to invest in IoT technology.
Examples of How MyBit Works
There are two core methods to apply the MyBit platform to IoT financing. First, there is the option to utilize the platform to fund new assets – meaning IoT devices that are currently not in production and generating revenue – such as equipping a house with solar panels. Second, there is the option of tokenizing existing IoT assets such as a Solar (PV) Farm that is already in production and generating revenue.
Funding New Assets
Alice wants solar panels that cost $20,000 and only has $5,000 to allocate towards them. Traditionally she would have to go to a lending institution (bank) and apply for a debt-based instrument (loan) which results in the bank actually owning the solar panels and Alice owing the bank. Since solar panels generate revenue, there is no need for debt-instruments because investors can profit from this opportunity without Alice having to owe any third-party (financially). Instead, Alice can crowdfund the remaining 75% (or $15,000) from investors all over the world. If the full amount needed ($20,000) is not raised in the set time-interval (typically 30 days) then all funds are returned via the smart contract to investors. If the funding goal is reached then the raised capital is automatically sent to the hardware installer/manufacturer which eliminates the risk of Alice misusing the funds.
Once installed, the Solar panels are connected to the MyBit platform via an oracle that pulls usage and payment data from the hardware so everything is transparent and can easily be tracked and audited by investors and third-parties. When the solar panels generate revenue (in this case, feed-in tariffs or selling back to the grid) investors receive a portion of the profits proportionate to their ownership stake. Operational and maintenance costs can either be priced into the initial funding target or be deducted from revenue as a percentage.
Tokenizing Existing Assets
PV Farm Example
Bob owns a solar farm that has been generating revenue for five years at a constant rate. Now, he wants to have more cash on hand but does not want to sell control of his farm. With MyBit, what he can do now is tokenize his farm and sell a portion of it (and resulting revenue streams) to investors.
This is much easier than traditional methods, entails less headaches and merelt requires verification of revenue. He stays in control by choosing who to sell to (like a crowdfunded acquisition almost). This is better because it is very rare for a private equity or investment group to not buy the entire farm at once, and even if they can be negotiated into a partial acquisition they will almost always want to obtain control over all the decisions. MyBit is better for Bob because he can obtain the cash he wants/needs without losing his business, and investors can invest in a safe asset with proven ROI.
The benefit of management post-acquisition is probably the biggest thing Bob gains from an operational standpoint. MyBit smart contracts enable the automated distribution of revenue, accounting, and is transparent for auditing when needed. This makes Bob’s life insanely easy because he does not have to work with an accountant and investors to aggregate money and then manually send to them.
Right now, MyBit is highly undervalued with a market cap of $5,425,439. The daily volume and overall liquidity for this coin could increase if listed on a larger exchange such as Binance or Bittrex. If and when that happens, MyBit (MYB) could potentially rise 3x – 4x its current value. Getting more traction and listed on a larger exchange will all depend on the implementation of their investment trading platform, which will be released Q1 2018. MyBit will be one of the better micro-cap coins if they can deliver what is stated in their whitepaper and roadmap.
Featured image courtesy of Shutterstock.