Cryptocurrencies are becoming increasingly popular due to the incredible price growth that they have achieved recently. First, as usual, Bitcoin rose in price, followed by other cryptocurrencies (altcoins). Although the popularity of cryptocurrencies is currently not even close to the one from 2017, more and more discussions are being started in various circles.
We often follow crypto groups that are a mix of new people interested in cryptocurrencies and “hardened veterans”. There are more and more posts about PI Network where people are questioning about the project. So we decided to clarify PI Network in this article.
What is Pi Network?
Pi Network is a virtual currency that can only be exchanged via a mobile phone. Unlike similar projects, Pi claims not to waste device resources like other free mining applications. Before Pi Network, mobile mining could be done through an application such as Electroneum (ETN), but this application consumes your device's resources to decode the algorithm (Electroneum uses the cryptonight algorithm). With Pi Network, when you pass tokens, the device does not heat up (it does not consume additional energy). It is also possible to turn off the app or turn off mobile data, and you will still be able to mine tokens every 24 hours.
Pi has an MLM segment in it, where you become an ambassador if you recruit new members to the network. As an ambassador, you earn up to a 25 percent bonus from the basic mining rate for each person you invite to the network, it is stated on their official website.
Is everything as it seems?
We personally have doubts about the Pi Network project, and the biggest one is their way of mining. When mining, it is necessary to use the Proof-of-Work consensus algorithm where miners are paid a certain fee in exchange for the cost of electricity (confirmation of transactions). Miners thus secure the network and allow it to function. In the case of PI Network, the project claims that it does not consume energy, and thus the whole mining story falls into the water, at least at the current stage.
The PI token value is currently non-existent because “Phase 1” is in progress. Although the application says how much PI is worth, it is not listed on any cryptocurrency exchange and there is no indication of when it could be. The process of listing such a token on the stock exchange would not make sense because who would buy a token that you can get for free? That is why listing on the stock exchange is envisaged in “Phase 3” when PI should not be free for mining.
PI currently has a large user base, about 7 million active miners. Most of these users have been won over to the story of the “free money” you get on a daily basis without any energy cost. With such a user base, it is possible that PI Network will develop a better ecosystem over time that will make economic and technological sense and bring real benefits to users, but this is currently not the case.
In our opinion, PI used a good marketing ploy to gain a large number of users, but the future of this project is difficult to predict. For more information, visit their website.
I use this application, too. Because it is so easy, and don`t take my time. Every day just clicks once. Don't expect something big from that, but, who knows... :)