Pi Network — How It is Increasing Threats for Bitcoin

It is a pretty big shoe to fill. But there are also some striking similarities between the two cryptocurrencies. One thing you have to know is that the idea of the Pi Network really derived from Bitcoin.

Originally, Bitcoin was intended to be used as a digital currency similar to cash, and its creators wanted people to use Bitcoin instead of cash for everyday transactions.

After the 2008 financial crisis, developers had a general distrust of institutions, which led them to do this. It was during this period that banks and institutions failed to protect the average person.

The fact is, these companies caused the collapse and our money was used to save them. The movement really paved the way for blockchain technology, and also for cryptocurrencies, generally. And from here Bitcoin was born.

The general public and cryptocurrency have gained some traction over the years, and I believe that it will only get bigger and better, and in general, many people feel cryptocurrencies will become more popular in the future.

Many people doubted Bitcoin will last long. And this is because the design of Bitcoin failed to make it into everyday currency. And here is where the Pi Network or Pi Coins can step up to the plate.

As you can see, there are lots of things about the Pi Network that make it a great candidate for becoming what Bitcoin wanted to become. In the case of Bitcoin. One of the things that failed to be as inclusive and accessible to everyone as its global reach.

During the beginning of Bitcoin, you had to possess a lot of knowledge to mine Bitcoins. In fact, it was virtually out of reach for the average person, and very expensive as well.

Bitcoin mining requires a lot of computing power, and not everyone can afford it, and those with a lot of computing power begin to control a larger part of the network. It turns out that almost 87% of all Bitcoins are owned by 1% of the network.

And these few have become so powerful that they make billions of dollars in profit every year from Bitcoin. Although Bitcoin is technically decentralized, only a very small number of people actually control it. Perhaps the Pi Network creators realized this to be a problem.

And instead of forcing people to use computing power to mine coins, they allowed people to mine from their smartphones, and anyone around the world can now mine Pi coins from the Pi Network using just a mobile device, where it creates a much more fair system than Bitcoin.

Because of the stellar consensus protocol, the wealth is likely to be distributed more evenly among miners. Basically, what’s going on here is that our phones aren’t actually mining a coin. Instead, what we have on our phone is simply a record for the developers.

When the time comes, these records will be used to distribute Pi coins. Using this method would also enable anybody to increase their stake in the network simply by promoting it without the need for computing power, thus creating a system that is fairer than Bitcoin.

In addition to being much fairer than Bitcoin, the Pi Network also has a great deal of scarcity. As you know, Bitcoin is too rare to be considered a medium of exchange or a currency, due to the limited supply of Bitcoin. It is far too expensive to use it like cash.

Last June, 23nd at Nine o’clock UTC, a single Bitcoin was worth $32,628.84. And due to Bitcoin’s high price, it is not individuals making purchases with full Bitcoins. As a result, only corporations use bitcoin to make significant purchases.

But what about the Pi Network sets it apart from the others?

Meanwhile, Pi Network has the ability to balance this element of scarcity which is one of its great features.

One article here on the medium has figured out that a Pi coin should cost somewhere between $1.70 although this price aligns with some of the websites that do try to estimate the price of a Pi coin, much of this is still based on speculation, high coins would not be near as valuable as Bitcoins, because for sure the price would be much lower.

Instead, this cryptocurrency is aimed at making everyday transactions possible. And that might be anywhere from a couple of dollars and beyond.

Therefore, if you think about it, the Pi Network or Pi coins might actually be what Bitcoin wanted to be, rather than a medium of exchange, a piece of Bitcoin went from a couple of cents to $50,000 in a couple of years, maybe we can expect the same type of growth simply because there are more Pi coins in the world than Bitcoins, and it will be used and accessed worldwide.

Stellar is a type of cryptocurrency that has a supply of 22 billion coins. It’s not the same as a Pi network, but it’s pretty close to it when compared to other cryptocurrencies, and its price has increased over time similar to Bitcoin.

I believe this is very relevant to the fact that the price of Pi coins continues to be very volatile, even with a large supply of them. Given bitcoin is still the top cryptocurrency, it’s likely to continue to follow the price of bitcoin for a while. However, I do think that as more Pi coins are used, they will eventually be able to establish their own prices.

Increasing the number of people buying using or even reading about the Pi network means that the price will increase in the future.

The reason for this is that all of these factors increase the demand for Pi coins immediately or over time, as opposed to many other cryptocurrencies that end up in the cryptocurrency graveyard.

In fact, the pie network has a pretty strong network of supporters, which helps to ensure that the coin doesn’t die on release and to immediately increase its price. It basically makes sure that the Pi network doesn’t suffer the same fate as Bitcoin did during its early days.

Surely, we’ve all heard of people destroying hard drives containing Bitcoins or using them to buy really ridiculous things, such as Stickers or Pizza.

There’s one thing you must realize, though, many of those people didn’t see a demand for cryptocurrencies back then. Indeed, you can imagine that many of them simply thought today’s revolution would die out.

As a result, it’s nice to see promotional codes about the Pi network, which can only demonstrate that the network is still alive and that many other people might be interested in becoming involved with it themselves.

Probably the most intelligent part of this project is the referral system because, without, it this would just be another cryptocurrency among 1000s of other currencies without any value.

As a result, people are already speculating about the value of the currency even before its official launch. There will also be a lot of officials and also unofficial places where the Pi network or Pi coins will be used.

Currently, there are over 19 million users on the Pi Network, which is actually quite far from the ultimate goal of 100 million users. Nevertheless, as it grows, it becomes a whole lot easier for the network to grow exponentially.

Pi coins are expected to have 100 million users by the end of this year, which may not be as high as Bitcoin, but is still significant nonetheless. And the developers here aim to release them as a decentralized cryptocurrency by the end of the year, you will therefore have all your concerns and doubts about the Pi Network answered before the end of this year.

So far, we can see that Pi coins really address a lot of the issues with Bitcoin. As I said, Bitcoin was created to become a medium of exchange, but it has turned into a store of value.

Due to its scarcity and difficult accessibility, Bitcoin is owned by a select few mining companies today. Some of these companies are located in China, Southeast Asia, in the US, and they own so much Bitcoin that they pretty much control the network.

Consequently, as a result of this, Bitcoin cannot become decentralized cash and will therefore have to be centralized somewhere else. Thus, Pi coins are at the moment the closest competitor that I can think of.

The reason for this is that practically anyone can own a cell phone and therefore mine Pi coins. The mining process is not particularly difficult and scarcity is also built into the network since the supply is fixed, and the reward gets progressively smaller over time and not to mention the increasing power polarity of buy coins.

Essentially, the Pi coin might offer something that bitcoin could not, and may or may not grow to the same price simply because of how the network works. Even with a steady price increase, it will still be highly competitive in an actual use case.

It is important to note that this is merely based on research and you should always follow the golden rule of investing, which is,

“To invest only what you can afford to lose.”

Source: https://medium.com/the-blue-stars/pi-network-how-it-is-increasing-threats-for-bitcoin-f69976f1d041?source=rss——-8—————–cryptocurrency