The legitimacy of Pi Network has been a controversial topic in the crypto space since 2019. Despite the strong backlash against the project from many crypto enthusiasts, it is still a crypto project that has one of the most engaged and biggest community members.
If you are one of those crypto enthusiasts, who picked interest in Pi network due to the recent buzz about it, this guide will provide you with all the information you need to know about Pi network.
We will explore such pressing questions as whether the Pi coin is real, how it works, and possible price predictions for Pi coin.
What is in this guide
- What is Pi Network?
- How does Pi Network work?
- Pi coin price prediction for 2023- 2025
- What is the future of PI coin?
What is Pi Network?
Pi is simply a crypto project at the moment and not yet a currency in the full sense of the word. The people involved in the Pi network are currently building and growing the necessary community to hopefully launch the Pi digital currency in a few months or years from now.
Pi network was developed and launched in 2019 by a group of Stanford students, Nicolas Kokkalis, Chengdiao Fan and Vince McPhilip to enable users to mine PI cryptocurrency coins using desktop and mobile phone apps, validating transactions on a distributed record. The Pi white paper reveals their basic idea is to fix the flaws of bitcoin mining and make cryptocurrency usable and accessible to everyday people.
The Pi Network app is used to mine Pi, and the mining technique requires users to punch a button on their phone every 24 hours. This proves that such a user isn’t a robot and they earn Pi coins in return. Pi mining is technically not crypto mining since no mining is taking place. Users are not verifying transactions at the moment.
If you want to join the Pi network, you must get an invitation code from an existing member to join the app. Pi Network has a referral system in which users earn extra coins according to how many others register using their invitation code.
According to the whitepaper for Pi Network, the Pi coin will not be available for public use until phase 3 of the project, when the Pi Network mainnet is launched. Developers have not provided any hints on the exact time this will take place.
How does Pi Network work?
Once you enter the Pi network and start mining, you start as a Pioneer. This level requires you to just mine Pi daily on the App. Over time, you will be promoted to the Contributor role when you declare five or more trusted connections. Then when at least 23 Pioneers join the network using your referral code, you become an Ambassador. The Pi network also has nodes. Once a user decides to run Pi software on their PC, they become a Node.
However, unlike nodes on networks such as Bitcoin that use proof-of-work (PoW) protocols, Pi nodes use an algorithm based on the Stellar Consensus Protocol (SCP). Pi Nodes reach agreement on the order in which new transactions should be recorded on a distributed ledger and validate such transactions.
As with other cryptos such as bitcoin, Pi was designed to undergo regular ‘halving’ to protect its scarcity. Halving is when the number of coins a miner receives for processing new transactions is reduced by half. This usually occurs when a certain milestone is reached.
Similar to other cryptocurrencies like bitcoin, Pi was created to periodically experience a “halving” in order to maintain its scarcity. PI’s mining rate halved from 1.6 π to 0.8 π per hour when it reached 100,000 users. It halved again to 0.4 π per hour when it reached 1 million users and halved again to 0.2 π when it reached 10 million users. The rewards will continue to halve, reaching zero when the network reaches one billion users.
Pi coin price prediction for 2023- 2025
When it comes to the Pi coin price prediction, most people believe it is impossible to certainly know what the value of the Pi crypto will be in the future. This is because the coin hasn’t even been launched yet. No one knows if there will be any value at all. However, some websites have given inaccurate price estimates that have nothing to do with the reality of Pi. For example, WalletInvestor and Digitalcoinprice, predicted the value of Pi coin based on data from May 2017 but the Pi network didn’t exist until 2019.
One thing is for sure. The price of the Pi Coin will be extremely low when it launches, just like many other cryptocurrencies out there. But the price could increase as more people start trading the coins. The number of platforms and people that accept Pi coins will also impact its price positively.
Most predictions for the Pi coin between 2023 – 2025 are just mere speculations. The best approach is to keep monitoring prices over a longer period. Until the Pi coin is released, all we can do is hope that it will be another successful cryptocurrency we can trade and make money on.
In addition, it is important for you to note that there is a difference between Pi Network’s coin and the Pi Network DeFi token, which runs on the Binance (BNB) blockchain and is available for trading on the PancakeSwap (CAKE) decentralised exchange (DEX).
What is the future of PI coin?
At the moment, it’s impossible to determine the future of Pi coin until it starts being traded on the open market. This is because it’s real world value is still speculative in nature. There are chances that it could be a scam and could fail. On the other hand, it might be a legitimate crypto and could turn out to be very popular. We have to wait and see, but in the meantime, it makes sense to exercise great caution.
Notwithstanding, Pi coin has attained widespread adoption in some countries, particularly in Vietnam. Pi Browser, the Pi Network’s mobile app, recently became the fourth most downloaded non-gaming software in Vietnam on the Apple App Store and the sixth most downloaded on Google Play.
In conclusion, while it is vital to be aware of these Pi facts, they should not be used as a replacement for your own research. Keep in mind that crypto markets are high-risk and very volatile.
Before trading, always complete your own due diligence by researching the latest news, fundamental and technical analysis, and most importantly, taking crypto courses to upgrade your knowledge. We recommend checking out this course.
Keep in mind that past performance of a coin is not a valid indicator of future results. And never trade with money you can’t afford to lose.
Can Pi be Traded on exchanges?
The Pi Network’s native token, PI, was listed on the Huobi Global crypto exchange on December 29, 2022. The price of the Pi token increased 461.3% in the 24 hours after the announcement, from $44.03 to $232.97 as of December 30, 2022, according to data from CoinGecko.
However, Pi Network responded by warning against the listing of its token on Huobi and other exchanges, tweeting that it hadn’t “authorised any exchange listing” as of 29 December 2022.
Can I sell my Pi coins?
Pi’s Core Team does not control when cryptocurrency exchanges (like Binance, Coinbase, Kraken etc.) decide to list Pi. However, Pi will be able to be openly traded in Phase 3 of the project (i.e., Mainnet). At that point, exchanges can choose to list Pi.
Is Pi legit?
Due to the inability to move mined Pi coins and the general criticism on mobile mining, Pi Network was seen as a scam and predicted to fail unexpectedly.
However, the Pi team is attempting to prove this claim as false with their recent developments.
Disclaimer: This article’s content is only provided for educational purposes and is the author’s personal opinion; it is not intended to be investment advice. You acknowledge that by reading this, you are not receiving investment advice or financial advice. Don’t make any investment decisions without first doing your own research and consulting with financial professionals.