Pi Crypto: Worth Investing Or Just Another Risky Bet?

Pi Network is a decentralised crypto mining platform that allows users to mine Pi coins (PI) directly from their smartphones. It was developed in 2018 by Stanford University alumni Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, with the aim of making crypto mining more accessible to everyday users. The Pi Network app has gained a vast user base of over 33 million, with its simple sign-up process and referral system. However, it has faced controversy due to its data collection practices and lack of clear utility or trading options. The value of Pi coins is highly speculative, and while some experts predict a substantial increase in the coming years, others are sceptical about its future worth.

Pi coin's value and potential for growth

Pi coin is a decentralized cryptocurrency that powers the Pi Network, which was created by Stanford graduates Nicolas Kokkalis and Chengdiao Fan in 2018. The Pi Network is unique in that it allows users to mine crypto directly from their smartphones without draining their batteries or consuming significant electricity. This accessibility has resulted in a large user base of around 35-47 million people.

The Pi coin is currently in its closed-Mainnet phase, meaning it cannot interact with other blockchains, and is not available on any exchanges. Its value is derived from IOUs on certain exchanges, and as of June 2024, it was priced at $38. However, as the Pi Network transitions to its Open Network phase in 2024, the Pi coin will become available for public sale, and its value is expected to increase.

Pi Coin Price Predictions

Due to the Pi coin's early developmental stage and lack of historical data, price predictions are highly speculative. Nevertheless, some crypto experts have provided forecasts for the Pi coin's value in the coming years.

CoinCodex predicts that the Pi coin could reach lows of $37.42 and highs of $305.86 by the end of 2024. Crypto Bulls Club forecasts lows of $22.384 and highs of $27.981 for the same period.

For 2025, Crypto Investor predicts a price range of $37.53 to $85.08, with an average of $61.30. CoinDataFlow, on the other hand, predicts a higher range of $63.19 to $189.57 for the same year.

Looking further ahead to 2030, Crypto Ground predicts a price range of $88.48 to $143.47, while CoinSwitch anticipates a higher range of $79.93 to $450. Meanwhile, the average price predicted by CoinDataFlow for 2030 is $597.56, potentially peaking at $608.73.

In summary, while the future value of the Pi coin is uncertain, the transition to the Open Network phase and increasing utility within the Pi ecosystem could drive up demand and price. However, the massive anticipated supply of Pi coins upon the Open Mainnet launch will likely result in significant sell pressure, causing the price to crash before achieving stability. Therefore, investors should carefully consider the risks and do their own research before investing in the Pi coin.

The Pi Network's transition to the Open Network phase

The Pi Network has announced its intention to transition to the Open Network phase of its Mainnet in 2024, provided that three critical conditions are met. The specific date for this transition remains undetermined, as it depends on the collective efforts of "Pioneers", community developers, and the Core Team, as well as factors beyond their control.

The first condition for the transition is the completion of Open Network Preparations, which includes technological, product, business, and legal aspects, adhering to the Pi Network's consistent strategies. The Core Team is currently on track with these preparations, and the technical and product milestones are outlined in the V2 Roadmap.

The second condition is related to Network KYC, Migration, and Utility Creation Goals. The network aims to achieve a critical mass of KYC-verified Pioneers and a diverse utility of Pi cryptocurrency within its ecosystem. The concrete targets for 2024 include 15 million Pioneers passing KYC, 10 million Pioneers migrating to the Mainnet, and the development of 100 real Pi apps that meet specific criteria. As of July 2024, there were 11.1 million KYC'd Pioneers and around 50 apps that were thought to be mainnet-ready.

The third condition is a favorable external environment. The successful launch of the Open Network depends on factors such as macroeconomic stability, legal and regulatory landscape, industry trends, and the absence of global crises or conflicts.

The Open Network period will begin depending on the maturity of the Enclosed Network ecosystem and the progress of the network's KYC. This means that the firewall in the Enclosed Network period will be removed, allowing external connectivity to other networks, wallets, and anyone who wants to connect to the Pi Mainnet.

The transition to the Open Network phase is a significant step towards realizing Pi's ultimate vision: to build the world's most inclusive peer-to-peer ecosystem and online experience, fueled by Pi, the world's most widely used cryptocurrency.

The incentive structure and recruitment of new users

The incentive structure of the Pi Network is designed to encourage user recruitment. The platform has a referral system where users earn bonuses for inviting new members to join. This referral system is a key component of the network's overall security architecture, as it relies on users vouching for each other to secure its ledger.

The Pi Network has four types of users, each with distinct roles and incentives:

• Pioneers: These are the people who mine Pi coins by tapping the lightning button in the app. As of 5 January 2023, there were over 35 million Pioneers.
• Contributors: Users become Contributors by inviting 3 to 5 people to join their trusted circle, allowing them to increase their earnings and improve the security of the network.
• Ambassadors: Ambassadors are responsible for bringing new users to the network using their referral codes.
• Nodes: Nodes are participants who use the Pi node software on their home computers. They play a crucial role in validating transactions and maintaining the integrity of the network.

The Pi Network also employs a mechanism called the Stellar Consensus Protocol, which provides benefits to users for their participation in the network. The mining rate for Pioneers is influenced by when they signed up, with early adopters receiving higher rates. This incentive structure encourages users to join the network early and actively recruit new members.

The Pi Network has gained significant traction, with over 35 million Pioneers as of 2023 and a claimed 5 million users in September 2022. The network's referral system and incentives for early adopters have likely contributed to its successful recruitment of new users.

The viability of Pi as a long-term investment

One of the main concerns about Pi as a long-term investment is the lack of a functional blockchain or coin value. Pi has gained a vast user base, but it has also gone years without launching a blockchain or its cryptocurrency, which means PI coins currently have no value. This has led to skepticism about the viability of Pi as a long-term investment.

However, it's important to note that the Pi Network is still in the pre-release stage, and the developers have stated that they aim to transition to an open mainnet where PI coins will be available for trading. The exact date for this transition is uncertain and depends on several factors, including community development and external variables.

Some analysts predict that the eventual listing of Pi on exchanges could lead to a substantial increase in its coin's value. For example, CoinCodex predicts that Pi could rise by 228.05% and reach $126.94 by July 2024. In the long term, CoinCodex estimates that Pi could reach $182.85 by 2025 and $158.18 by 2030. Similarly, Telegaon's price forecast for Pi expects the coin to average $176.17 in 2024 and rise to $237.22 by 2025. These predictions indicate that Pi could have the potential for long-term growth and viability as an investment.

On the other hand, it's worth considering that Pi has been criticized for its incentive structure, which heavily favors recruitment. Miners are compensated with native cryptocurrency that currently holds no real value. This has led to speculation that Pi could be a pyramid scheme. Additionally, Pi has been controversial due to its data collection practices and the requirement for users to provide personal information for "Know Your Customer" (KYC) verification.

In conclusion, the viability of Pi as a long-term investment remains uncertain. While some analysts predict potential growth and increased value in the future, there are also concerns about the lack of functionality and controversy surrounding the project. Investors are advised to exercise caution and conduct thorough research before deciding whether to include Pi in their investment portfolio.

The controversy surrounding the Pi Network and its data collection practices

The Pi Network has faced scrutiny from cybersecurity experts and critics regarding its data collection practices, delays in its mainnet launch, and meticulous KYC (Know Your Customer) process. While the project aims to democratize access to digital currency by allowing users to mine Pi coins directly from their smartphones, there are concerns about the amount of data the platform collects from its users.

The Pi Network's privacy policy states that they collect users' personal data, such as contact and identity information (e.g., email address), correspondence with the app, and other app usage information. They also collect advertising-related data, including how users engage with ads. This data is used to build detailed user profiles, including device information, contacts, location, and log information. While the Pi Core Team asserts that the verification of this information aims to ensure user authenticity and compliance with specific country regulations, critics argue that the slow pace and stringent personal data requirements of the KYC process fuel skepticism about the platform's legitimacy.

Additionally, there are concerns about the lack of transparency in the Pi Core Team's communication and updates regarding the open version of the mainnet. The delays in the mainnet launch have left users waiting for over a year beyond projected timelines, leading to speculation about the team's intentions. These factors, coupled with the absence of legitimate avenues to trade Pi coins and privacy concerns, have led to further skepticism and controversy surrounding the Pi Network's data collection practices and overall legitimacy.

It is worth noting that the Pi Network's data collection approach is similar to other social networks like Facebook, which collect extensive user data for advertising purposes. However, users who value their privacy may find the platform's data collection and sharing practices invasive. As such, the controversy surrounding the Pi Network's data collection practices remains a significant point of debate in the cryptocurrency community.

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