Meridio Utilizes Blockchain to Democratize Real Estate Private Investing
By now, you’ve heard of blockchain and the associated cryptocurrency revolution. For years, this discussion largely centered on the speculative component of digital tokens. But recently, companies like Meridio have begun utilizing blockchain in new ways to realize the technology’s full potential. For this Meridio review, we’ll examine how one great idea can impart significant progress in society, in this case to democratize private investing in real estate.
But before we dive in, we should have a basic understanding of the blockchain. Typically, the blockchain is defined as a distributed, decentralized, public ledger. In human language, this meanes a database that is controlled by a wider (i.e. public) network.
What makes the blockchain unique from other databases is that the control mechanism is decentralized — theoretically, no single person or entity governs the transactional postings of the platform.
To appreciate why this Meridio review is preoccupied with the idea of decentralization, we must first acknowledge the potential for blockchain technologies to overturn modern commerce and communication protocols.
Across multiple industries, and particularly in real estate, buyers and sellers cannot engage in direct, peer-to-peer exchanges. Instead, they must go through an army of intermediaries — agents, brokers, attorneys, etc. — to seal the deal.
A key reason why home prices are so high in certain markets is the “generous” fees that middlemen charge. Meridio’s proprietary blockchain technology purports to do away with this middleman industry. Once fully fleshed out, blockchain-based platforms could dominate the real estate sector, perhaps upending it altogether.
With the blockchain, you can drain the swamp, so to speak, saving money for the two primary parties. Now you can see why Meridio is one of the hottest private investing opportunities.
Democratization Is Central to Any Meridio Review
The ability to bring buyers and sellers together without unnecessary (and costly) intermediaries is at the heart of several blockchain-related projects. But no Meridio review is complete without discussing what makes the underlying company so special: democratizing an asset that is steadily escaping many American families.
You may have heard the expression that real estate is the king of all investments. There are myriad reasons why advocates say this. At the basic level, you can’t create more land (at least not without spending an unfathomable amount of money). So, just by virtue of land ownership, you’re significantly ahead of the game.
Second, real estate gives you options. For most, that means rental income. Own even one piece of property in a hot market and by living frugally, you can potentially retire off that income.
However, with stagnant wages and now a potential economic crisis due to this pandemic, it’s getting harder for everyday Americans to get a piece of the dream. Additionally, a startling article from the New York Post revealed that corporations may be using bailout money to buy homes throughout the country, effectively creating a fiefdom.
You want to talk about bad actors? That’s some dirty business. Fortunately, Meridio provides the potential to even the playing field. By facilitating fractional ownership and without onerous upfront costs, almost anyone can start investing in real estate. Further, fractional ownership allows individuals to steadily build wealth.
I’d be remiss not to include in this Meridio review that the platform promotes a win-win scenario. For asset holders, they enjoy streamlined transaction processing as well as a broader pool of investor dollars that never would have materialized under traditional mechanisms.
Risks to the Blockchain Business
As with any private investing opportunity, there’s no way to avoid some degree of risk. With Meridio, the company has no plans for a token sale. Therefore, the risk here isn’t centered on the forward viability of its equity shares, but rather about the sustainability of the business.
While any Meridio review will discuss the virtues of democratization, attempting to bring about equality in real estate can also unintentionally lead to gentrification. Let’s face it — although Meridio, like any platform of its kind, gives everybody a chance to build wealth, it may only be certain communities that have such access.
In turn, this could lead to a widening wealth gap between classes and communities. And that’s an issue that has taken on much more significance during these times of social unrest.
Second, Meridio makes bold claims about imparting dramatic changes in the real estate investment ecosystem. However, the New York Times is right in pointing out that the U.S. has a “primitive title recording system” that will “thwart modernization efforts.”
In other words, blockchain technologies may be able to affect positive superficial changes. But if the old, decrepit piping isn’t changed, there’s only so much an innovative idea can do.
Finally, don’t be lulled into a sense of complacency regarding blockchain security. Though the blockchain architecture is theoretically hackproof, that doesn’t mean your personal account shares the same security confidence. In reality, very few if any digital platforms are completely safe from attack.
A Compelling Use of the Blockchain
If this Meridio review has taught you anything, it’s that the blockchain industry is finally moving beyond speculation and into an era of utility. Supposedly, that’s what the original creators of cryptocurrency technology wanted. And with Meridio, we’re getting a substantive glimpse of what the future may look like.
As stated earlier, there are no Meridio tokens on sale. Rather, this is about the business of fractional real estate ownership. If you’re interested, head on over to its website where you can apply to become an investor on the platform.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.