Pi Network (PI) is the newest digital coin to grab the attention of the cryptocurrency community, even before it has fully launched.
Some users view it as a way to get involved in a cryptocurrency from the ground up and profit in the future, in the same way that early Bitcoin adopters have racked up massive gains from mining and holding the coin. However, others have likened Pi to a multi-level marketing (MLM) scam that holds no value.
But what is Pi Network and how does it work? Have you heard of the Pi cryptocurrency and are you looking to find out more about it as a potential investment?
This article provides an overview of what the Pi Network aims to achieve and how the Pi cryptocurrency price prediction is already taking shape.
What is Pi Network?
Pi Network is a digital currency project that aims to keep crypto mining accessible as the centralisation of the first generation of currencies like Bitcoin has put them out of reach of everyday users.
The Pi Network, developed by a team of Stanford graduates, enables users to mine coins using its mobile phone app, validating transactions on a distributed record.
With branding based on the number π, Phase 1 of the project launched in 2019 on Pi Day, March 14, with its free Pi mining app. By June 2019, the network had more than 100,000 active users, and a year later when Phase 2 launched there were more than 3.5 million.
The app started running ads in May 2020 to provide a source of financing for the project. The user base reached 14 million in March 2021, having crossed the 12 million mark in February.
Pi Coin is the cryptocurrency that runs on the Pi network, and 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 that a miner receives for processing new transactions are reduced by half when a certain milestone is reached.
Is Pi crypto worth anything?
At this stage, we can’t answer the question of will the Pi Network be worth anything.
Pi’s mining rate halved from 1.6 π per hour when it reached 100,000 users, halved again to 0.4 π per hour when it reached 1 million and again to 0.2 π when it reached 10 million. It will continue to halve, reaching zero at 1 billion users.
During the current second phase of the project, users can volunteer to test out Pi Node desktop software on their computer. But when will Phase 3 launch will it be in 2021? According to the developers, the start of the third phase has not been predetermined but depends on the progress made in the second phase.
Unlike nodes in networks such as Bitcoin or Ethereum that use proof of work protocols, Pi Nodes use an algorithm based on the Stellar Consensus Protocol (SCP).
Pi Nodes validate transactions on a distributed ledger and reach a consensus on the order of new transactions that the ledger records.
Is Pi coin legit?
As mentioned, some making Pi coin predictions aren’t necessarily worried about the cryptocurrency’s value in the future; they’re more concerned about whether this project is a scam.
Some of the most optimistic Pi coin price predictions tend to come from those who have downloaded the app; some have suggested that a single Pi could be worth anywhere between $10 and $100 right now.
However, there’s absolutely no evidence to back this up, and the team behind the Pi Network hasn’t released much information on the project’s progress. Pi Network appears to be especially popular in Southeast Asia.
“The Pi Network has a smartphone app and servers to keep them running, so why don’t developers release its source code for the community to review?”
Adverts were also recently added to the Pi Network’s app, suggesting that the software’s main motivation could be monetizing the millions of users who have downloaded it.
Another issue concerns the data that someone needs to give up when they download the app, including their full name, phone number and Facebook username. Specialist warned that it’s possible that other forms of data could be stolen from a user’s device.
Alarm bells have also started ringing that this may be a pyramid scheme based on the fact that new users can only join if they have a referral code from an existing Pi user.
Does Pi Network have a future?
Pi Network price predictions for 2021 will be easier to make if the block chain protocol ever launches, and if users end up receiving the cryptocurrency that they’ve been mining. Until then, we’re going to have to wait and see. This is meant to happen when Phase 3 makes its debut.
Unlike the myriad other block chain projects, there’s very little information about Pi Network online, including on crypto news sites.
Of course, there is a chance that we could be proven wrong about Pi Network: that it’ll launch, that users will get their coins and that the cryptocurrency will have substantial value.
Crypto projects have surpassed expectations before, but it is also a sector that is dominated by rug pulls, scams and pyramid schemes, as seen with the collapse of OneCoin.
Some estimates have claimed that up to $19.4bn (£14.2bn, €16.4bn) may have been stolen by the time OneCoin went under, and dozens of people ended up getting prosecuted.
How much will Pi crypto be worth in 2025?
Just to stress once again, we cannot make a Pi coin price prediction for 2025 because the cryptocurrency hasn’t been listed anywhere yet, meaning it’s impossible to perform technical or fundamental analysis.
Take any Pi coin price predictions you do come across with a pinch of salt, as there’s not much trustworthy information to underpin it.
Remaining vigilant for scams is crucial and, although the Pi Network is free, you shouldn’t discount the possibility that the project isn’t benefiting from its users in other ways.
We have asked all of the questions posed by this article to Pi Network, including whether Pi is a scam, why users can’t access their crypto yet, why users need a referral to join, when Pi will be listed on crypto exchanges, when Phase 3 is due to launch, whether user data is being used for financial gains, how much Pi is currently worth and why ads were added to the app.