Debunking The Top 3 Pi Network Myths

Long development time sure gives people chance to come up with wild ideas.

Today, we are debunking the top 3 myths around Pi Network.

Myth #1: Global Consensus Value “1 Pi = $314,159”

The largest and most polarizing myth which spread amongst pioneers is the Global Consensus Value movement. Most commonly referred as GCV, the idea is simple: 1 Pi = $314,159. Although there is no official price for Pi yet, folks believing in GCV advocate pioneers to buy and sell goods and services using this unified valuation.

This idea sprung up shortly afterwards Nicolas Kokkalis, one of the founders of Pi Network, said in a video that “Pi is worth what pioneers make it worth.” This makes sense in the enclosed mainnet because there is no official market price, therefor pioneers’ only choice is to assign some value to their Pi when trading.

This fantasy falls short as soon as Pi reaches open mainnet and Pi becomes a tradable currency on exchanges. Why? Because billions of Pi as well as millions of both pioneer and non-pioneers alike are going to trade Pi on the global markets simultaneously. With billions of Pi in supply, the chances for Pi to have a price of $314,159 is 0.

Exchanges listing Pi are likely the ones that will decide the starting price of Pi based on the token’s supply, and traders decide which way the chart goes via buying and selling Pi on the exchanges. From that moment on, if you want to know what the price of Pi is, you can easily check any time and you are no longer forced to barter to make up your own estimation whenever trying to trade Pi.

The whitepaper states the circulating supply of Pi Network at the start of open mainnet will be 10-20 billion Pi, so, “if” each Pi was $314159, the market capitalization of Pi Network would be over 6 quadrillion dollars, which equals to 6000 trillion dollars. This is precisely the problem. We have many coins therefor the price of Pi will be lower.

For example for Bitcoin to reach a price of $314,159, it needs to 5X in valuation, but there are only ~20 million Bitcoin in circulation — we will have 1000 times more Pi in circulation because we’ll have 20 billion circulating Pi, resulting a 1000 times longer road to realize the "GCV price”.

We’ll leave you this picture to conclude our case.

Myth #2: Pi Is A Stablecoin

Over the years, guessing and fantasising about price has become a common occurrence, which is standard in any coin. However, some people are under the impression that Pi is a stable coin. They claim Pi should be $100, or Pi should be $31.4 or Pi will be $X because of X Y and Z reasons.

The Pi whitepaper doesn’t mention anything about Pi being a stablecoin nor are there any underlying assets or protocols supporting certain price levels and keeping Pi’s price stable. Pi was never intended to be function this way.

Stablecoins are cryptocurrencies that are typically pegged to a stable asset, such as the US dollar or gold, to minimize price volatility. Additionally, there are underlying assets behind each stablecoin to maintain the pegged price.

For example the largest stablecoin Tether-USDT have regulatory audited reserves, which can be checked on their website. There are billions of actual dollars backing up the price of Tether — even though the exact amounts are debatable.

Pi Network is not a stablecoin. In contrast, Pi is a cryptocurrency that is still in development, but its value will fluctuate based on market dynamics once it is fully launched and traded. The value of Pi will depend on factors like supply and demand, utility, and market sentiment, rather than being anchored to a stable asset.

Pi Network’s price will develop over time, but it can swing up and down, same as every other cryptocurrency that is not a stablecoin. This property inherently makes cryptocurrencies volatile. In fact, that’s precisely why traders buy, sell and speculate them because volatility is where money is made — both up and down.

Myth #3: Pi Network Is A Scam

This must be every pioneers’ all time favourite myth. The problem is: out of the top 3 myths, this is still up for debate. Why is that? There are many metrics to take into consideration. Most of us know the important metrics, so let’s start with the obvious one: time.

Firstly, it has been longer than half a decade since the Pi Network project officially launched, yet, Pi still doesn’t have an official price. 99.99% of pioneers has not been able to profit from this mining venture on any meaningful scale. After continuously supporting any project for 1, 2, 3 or more years, people naturally expect something in return. Although not much has been directly promised, we still haven’t reached the open mainnet phase, and instead, we are stuck in limbo in the enclosed mainnet phase, without a price.

Secondly, Our mobile mining balances show a big number, our wallets only show fraction of the mobile mining balance. This is because all the rewards haven’t been allocated yet. No matter how much you helped the network grow or be secured, you are stuck waiting for the rewards distribution just like everyone else.

Next, there are other reasons such as different coins launching and getting going so much quicker; technical difficulties for pioneers with KYC or migration; or the fact that we are watching ads every time we restart mining which makes the team some money. So lets cut to the chase: has Pi Network been a waste of time?

Many people will say that so far, Pi Network has been a waste of time for them — it doesn’t matter how you look at it, right now, the tangible benefits are little. If you stopped mining Pi today and came back in a few months, you would have not lost out on anything. This is also true for people who gave up Pi already (which are the millions of inactive accounts that are being burned in the upcoming few months).

On the other hand, Pi Network is making great progress towards open mainnet and by all accounts it seems within 4-10 months, we’ll get there. And even if not, we will still get there eventually. Pi will have a price soon, then, we can start trading, then continue building the Pi ecosystem as well as push Pi to the next level (which enclosed mainnet clearly limited).

All the ideas, systems and technologies being developed over the last 5 years are going to be put to the test soon. Combined with our massive pioneer community, we have solid infrastructures and a variety of dApps which utilise Pi. These combined are forming and holding together the Pi ecosystem. This ecosystem is nowhere near the level of Bitcoin or Ethereum yet, but it’s a solid start, so we can catch up in the future. It’s critical we have this, otherwise the price of Pi would have been much less than you even think.

Based on how many copycats surfaced following Pi Network’s popularity, we can draw a quick conclusion that if you are patient enough, you will profit with Pi in the coming months upon open mainnet. You have nothing to lose and all to gain. No point asking “how much?” because nobody knows.

Additionally, Pi Network is arguably the biggest and most developed free-to-mine cryptocurrency out there. Its value proposition and ecosystem is also large, even larger than top 100 coins coins. So although it took longer than expected, you are still holding a promising, potent asset.

Overall, we don’t think Pi Network is a scam and we looked at a wide variety of measures, but we agree that waiting this long and seeing so little tangible results is questionable. Yes, we gained some benefits, and the tech is interesting, but we still not got full functions of the cryptocurrency we were promised. Lets revisit this myth after open mainnet in the coming months to see if it’s a myth or not.

In Conclusion

Whilst there are many myths around Pi Network, the stablecoin and GCV claims can quickly be put to rest as there are no mechanisms or enough money in the world respectively to back them up.

But answering the question if Pi is a scam is debatable because no matter how hard the efforts of the Pi Core Team are, at the end of the day, pioneers have little to show for their unwavering support.

The coming months are critical for the Pi Core Team to put together all the puzzle pieces and launch the Pi open mainnet, so we may finally enter the arena of cryptocurrencies — where the true challenge only just begins.

That’s a wrap from us today!

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