IBH Capital Will Accept Investments in Cryptocurrencies in 2019
IBH Capital Management, a privately-held asset management and investment firm focused on commercial real estate and business assets will start accepting investments in cryptocurrencies in 2019.
For quite a long time, IBH Capital has been paying close attention to the adoption of blockchain and cryptocurrency in commercial real estate. Although this technology is still in its early stages, IBH Capital believes it has the potential to redefine several key areas of commercial real estate ranging from asset acquisition/disposition to asset management.
There are many advantages to using blockchain, the technology behind cryptocurrencies, in real estate. The most important of these advantages are efficiency, security, transparency, and universal accessibility. IBH Capital believes that, as the technology develops, these key advantages can streamline and expedite multiparty financial transactions and due diligence, improve security, reduce fraud, and increase trust by allowing all parties access the same information in real time. IBH Capital further believes that this technology will attract a wider range of market players by enabling peer-to-peer transactions, specifically cross-border transactions.
By 2021, Blockchain is forecasted to grow to $9.7 billion with most of the growth expected to come from the financial, banking, and public sectors. In 2017, venture capital investors deployed over $1.0 billion in blockchain. As a reference, the total blockchain investment in the fourth quarter of 2017 was $392 million, more than four times the $93 million invested in the fourth quarter of 2016. Both European and Asian markets show excellent potential for blockchain, which is yet to be exploited to its full capacity.
With the further advent of the blockchain, IBH Capital will benefit from the improved transaction efficiency, including lower friction costs (e.g. financial and legal paperwork preparation/review fees), smart contracts (legally enforceable electronically authenticated contracts) to save time and money, automated payments and cash flow monitoring, as well as the real-time process tracking that can accurately display the stage and status of any transaction and simplify cross-border deals in multiple currencies.
As a globally-oriented asset management and investment firm, IBH Capital is particularly enthusiastic about the three following applications of blockchain:
Asset management: automation of invoicing, account reconciliation, and lease management.
Global asset trading capacity: faster process of matching buyers to sellers in a transparent and borderless marketplace.
Higher asset liquidity: the value of an asset can be allocated to a number of tokens, which can then be sold to several investors who are only interested in partial ownership of the asset.
IBH Capital believes that this will be a crucial and evolutionary milestone in the development of the blockchain technology helping the partnering companies, equally interested in increasing their digital technology capabilities, further advance their business expansion and build a bridge between traditional and cryptocurrency investment worlds.