By Monty
Pi, the new digital cryptocurrency launched in 2019, is one of the latest buzz-worthy projects in the blockchain space. With over 17 million engaged pioneers mining Pi on their phones, this cryptocurrency has captured the attention of many looking to get in early on what could be “the next Bitcoin.” But with Pi still in its initial phases of development and not yet transferable or tradable on any exchanges, one big question is – what could Pi be worth down the line if it succeeds? In this article, we’ll explore Pi coin price prediction and look at the key factors that could influence the Pi price.
What is Pi crypto?
Pi is a relatively new cryptocurrency developed by a team from Stanford University. It is designed to be “mined” (earned) directly on smartphones. Rather than using computer processing power, Pi is mined through a mobile app by making connections on the peer-to-peer network. The more engaged users are on the network, the more Pi they can earn.
Users join the Pi network by downloading the free Pi App and confirming their identity through a KYC (Know Your Customer) process. This prevents fake accounts and bots from mining Pi.
For each user you invite to join the network and who starts mining Pi, you receive a boost to your mining rate. This encourages users to build their “security circle” of connections.
The rate at which you can mine Pi decreases over time as more users join the network. The maximum supply of Pi is unlimited, but the distribution rate decreases over time.
Pi mined so far is locked and cannot be transferred, so the cryptocurrency has no monetary value as of yet. The network needs to reach a critical mass before Pi can be exchangeable and hold real value.
The developers plan to make Pi exchangeable with other currencies when ready. At that stage, the value of Pi will be driven by supply and demand on exchanges and markets. The more users and activity on the network, the more valuable Pi could become.
Pi uses a consensus algorithm called Stellar Consensus Protocol (SCP) to confirm transactions. This allows transactions to be verified without using extensive computing power and electricity like Bitcoin.
How Does The Pi Cryptocurrency Work?
To understand what drives Pi’s value, it helps to first understand how it works.
Pi utilizes a mobile-first approach for mining, rather than relying on expensive specialized hardware and massive computing power like Bitcoin and Ethereum. Users download the Pi App on their smartphones and earn Picoin by making connections with other users and contributing to the network.
Some key things to know about how Pi works:
- Mining With Your Phone: After signing up with an invitation code and passing KYC, users can start mining Pi simply by clicking a button in the app and confirming they are not a robot periodically. More active engagement earns more currency.
- Building A Security Circle: Earning rate increases for each trusted connection a user invites to join their “security circle.” This incentivizes building a legitimate network of real users.
- Distribution Rate Slows Over Time: The distribution rate for mining Pi decreases as more users join the network. This means early adopters get the most benefit. The maximum supply of Pi is unlimited.
- Pi Is Not Yet Transferable: Pi earned so far cannot be transferred or exchanged. The developers will enable exchangeability when ready. This gives it no monetary value currently.
- Stellar Consensus Protocol: Pi uses SCP to validate transactions on the ledger without proof of work. This allows transaction verification without massive computing requirements.
Pi cryptocurrency value prediction
As Pi has no working product yet or track record to assess, any pricing predictions are purely speculative. However, if Pi succeeds in becoming an actively used cryptocurrency, here are some potential valuations based on different scenarios:
- Reaching Ethereum Market Cap (~$240 Billion): Pi’s developers suggest it could reach Ethereum’s level of market capitalization. If so, with Pi’s current supply, 1 Pi could be worth around $10. However, Pi has no cap on supply so the value per coin is likely much less in reality.
- Following Dogecoin Path (~$0.10 initially): Dogecoin initially started very cheaply, at around $0.10, before spiking up. If Pi follows a similar trajectory, it may start at around $0.10 when first exchangeable, especially with no supply limit capping value per coin.
- Competing With Top 10 Cryptos (~$3): If Pi emerges as a popular utility token that cracks the top 10 crypto assets, 1 Pi could plausibly be worth around $3 based on the circulating supply needed to reach a ~$100 billion market cap.
- Starting With Micro-Transactions (<$1): More conservative estimates guess Pi could start out valued at a fraction of a dollar, especially if the unlimited supply causes prices to remain low. A large circulating supply means it may only facilitate micro-transactions initially.
- No Exchange Value Due to Inflation: The most pessimistic scenario is that an unlimited supply of Pi coupled with massive inflation once exchangeable leads to each Pi being worth a fraction of a cent. The ample supply could hugely dilute any speculative value.
As this shows, Pi has the potential to be worth anywhere from a fraction of a cent to $10+ per coin based on different projections. The core factors that will influence its real-world value include:
- User Adoption: How many daily active users will Pi have? The more real-world utility and activity, the better for Pi’s valuation.
- Supply Scarcity: Will any caps or burning be implemented for the unlimited supply? Lower inflation leads to a higher value per coin.
- Trading Activity: How much demand will there be among crypto traders once exchangeable? Speculation may drive short-term price spikes.
- Competitive Landscape: How will Pi differentiate from other cryptos? Unique utility and capabilities could make it more attractive.
While the returns earned by early miners may end up being underwhelming according to some projections, Pi’s real use value may take time to develop. But if the network succeeds in reaching mainstream adoption in the coming years, Pi holders stand to benefit considerably.
Understanding Pi network value
The Pi Network forays into the world of cryptocurrencies with the goal to make crypto mining an accessible affair. Unlike mining Bitcoin, which calls for a rather elaborate setup, Pi coins can be mined using a simple mobile phone app. The network uses an algorithm based on the Stellar Consensus Protocol (SCP) as against Bitcoin’s proof-of-work (PoW) protocols.
The Pi network evolves an ecosystem of related services, including a payment wallet and a browser app – aiming to position it much more than just another cryptocurrency mining app. A key element of this network is that it permits only one Pi account per person, with approximately 25% of all Pi coins allocated to the Pi core team.
Pi coin price prediction 2025
While it’s essential to note that Pi coin doesn’t currently have a price yet, experts have presented a range of Pi coin price predictions for 2023-2030, which are based on the network’s solid technical foundation and innovative attributes like mobile accessibility for mining.
Given the novelty and unique features, it is expected that Pi coin could experience substantial growth in the future. Some predictions suggest that it could reach up to $191.71 by 2025. However, these are solely projections and should be taken with a grain of salt as the actual price of Pi coins can vary in the volatile world of cryptocurrency.
Investments in cryptocurrency involve inherent risks, making it crucial to conduct comprehensive research or seek financial advice. If you’re optimistic about the future of the Pi Network and want to get a head start, you could consider becoming a Pi node now, as recent numbers show that Pi nodes have exceeded 12,000.
The journey of Pi Network seems promising. The progress of the network and the response of the crypto community toward Pi coins will certainly be interesting to watch. Though the road to 2025 might be filled with unpredictability and potential challenges, the futuristic vision and innovative approach Pi network brings, suggest a dynamic evolution of cryptocurrency mining.
However, the possibility of the Pi Network gaining speculated traction is purely contingent on various factors like regulatory acceptance, competitive landscape, and the market volatility associated with cryptocurrencies.
In conclusion
In conclusion, while Pi still has an extremely uncertain path ahead, its current traction as one of the largest cryptocurrency experiments sets it apart from many fledgling projects. If the development team can create real utility and differentiation for Pi as both a digital currency and platform, its valuation may surprise skeptics in the coming years. Even at the low end of pi coin value, early accumulators stand to gain a good upside if Pi succeeds.
For now, mining Pi and growing the network remains the best approach for pioneers who see the potential in the project’s possibilities. Although Pi’s eventual value is highly speculative, if executed well on its ambitious vision, Pi could be the next breakout cryptocurrency fueled by an engaged community and mobile-first approach.
FAQs
1. What is Pi Cryptocurrency, and how is it unique?
Pi Cryptocurrency is an upcoming digital currency that can be mined through a mobile app. This approach to mining makes it more accessible to ordinary people. The unique aspect of the Pi Network is that it allows only one account per user and leaves no carbon footprint, unlike most cryptocurrencies.
2. What could be the potential value of Pi Cryptocurrency by 2025?
As per some expert predictions and market analyses, the value of Pi could potentially reach as high as $191.71 by 2025. However, these figures are just predictions and should be taken with caution, given the inherent volatility of cryptocurrencies.
3. When will Pi Cryptocurrency become available for trading?
As of now, Pi is not yet available for trading on any cryptocurrency exchange platform. The network is still in the development phase. However, they have announced that they aim to complete their platform and become fully tradable in the future.
4. What are the risks associated with investing in Pi Cryptocurrency?
As with any cryptocurrency, investing in Pi involves inherent risks. Its current lack of a market price, the absence of recognized exchanges, and its intrinsic volatile nature pose high risks. It is therefore recommended to thoroughly research and, if possible, seek professional financial advice before investing.
