Regardless how quiet the community is, people speak up loudly whenever it comes to the topic of price.

So today, we are diving deep into why it is impossible to guess the starting price of Pi right now, then, we showcase our remedy to help pioneers instead.

DETERMINING THE STARTING PRICE

The starting price of a cryptocurrency is determined by several factors:

1. Initial Coin Offering (ICO) or Token Sale — During an ICO or similar event, the price is often set by the project team based on perceived value, development costs, and market demand. Pi Network did not have an ICO or public token sale.

2. Market Supply and Demand — The initial supply of coins and the demand from investors or users at launch influence the starting price. High demand with limited supply can drive up the price. Pi Network’s supply is slowly earned by its users throughout the years; most of the supply remains to be mined over the years.

3. Perceived Utility and Value — The functionality, use cases, and technology behind the cryptocurrency play a significant role in determining its initial value. Pi Network has a variety of use-cases, mainly in form of decentralized applications by 3rd party developers.

4. Liquidity and Exchange Listings — The availability of the cryptocurrency on exchanges and its liquidity can impact the starting price. Easier access through major exchanges often leads to higher initial prices. Pi Network will likely be listed by top exchanges due to the sheer amounts of its users, ecosystem and reputation.

5. Market Sentiment and Hype — Public interest, media coverage, and community sentiment can create hype, driving up the starting price. Pi Network’s anticipated launch after 5+ years with 10,000,000 holders is going to be one of largest launches in cryptocurrency history and we expect a loud entry into the market.

These factors combine to set the initial market price when a cryptocurrency, including Pi, becomes publicly tradable.

On top of all this, if you want to have a chance at guessing the price correctly, you must know more information about the supply of Pi.

THE SUPPLY OF PI

Pros

• Supply is widely dispersed — Pi’s adequate distribution prevents wealth concentration, fostering a more equitable economic environment. Aside from the core team, there isn’t any major whales controlling large portions of the supply therefor a select handful of whales cannot manipulate the network or the price of Pi.

• ~70% of the migrated Pi are locked — this shows clearly that most people are committed to holding long term. We have to check up on this figure after the 2nd migration, once bonuses are distributed to pioneers.

• Pi is earned through effort — you could say Pi is an airdrop, but you’d be wrong. Pi is earned throughout the years in exchange for helping the Pi Network grow or be secured. There are a dozen of ways to earn Pi but one thing is for certain: Pi did not come quickly nor easily. Pioneers have to take into consideration all their invested efforts when thinking about the value of their Pi. The amount differs a great deal across pioneers.

Cons

• Unknown starting supply — Currently we have approximately 1.2 billion circulating supply. However, it is stated in the whitepaper our initial circulating supply at open mainnet will likely be around 20 billion. A huge discrepancy from our current standpoint.

• Rewards are not yet allocated — as soon as people receive their 2nd migration, which includes referral team, security circle and other bonuses, the perception of Pi’s value will change. As there will be more Pi coins available for people, we’ll see more spending in the ecosystem, which in turn may cause the scarcity aspect of Pi to shrink.

• How long will mining last? — E.g. in 2140, the last Bitcoin will be mined. When will the last Pi be mined? We don’t know, nor do we have any information of how long mining will continue. This is critical information it affects perception of price for everyone. If the public were told they could mine Pi for 50 years, they will think of the price differently, than if you told them “this is the final 5 years you can mine Pi”. We must have this piece of information eventually and we speculate it will be confirmed after the 2nd migration, after the grace period deadlines have ended, but before open mainnet.

OUR REMEDY FOR STARTING PRICE

Firstly, accept this fact: there is a wide-variety of unknowns, variables and uncertainties at this moment of time, making in impossible to guess the starting price. If you accept this, there’s little to worry or stress about.

Secondly, people predicting or preaching starting prices could be just as wrong as you could be by simply guessing. The problem is not that they are not smart. Rather, the fact that we are all missing critical information pieces. Take everyone’s predictions with a huge grain of salt.

Next, understand the beginning of the price action is just that: the beginning. Pi Network is an ecosystem made up of tens of millions of people, as well as systems, utilities and technologies. The underlying currency, Pi, becomes more and more valuable as the ecosystem grows and develops with the passing of time. Hence, Pi is a utility coin. Although Pi Network may transition to open mainnet in a “ready” state, this is not as polished of a product as in 1, 2 or 3 years time. The continuous work of Pi Core Team is proof they care about building more than about anything else, meaning they are here to stay and there are more great things in the pipeline.

Additionally, put your long-term investing goggles on and view cryptocurrency through those lenses. There is no shortage of cryptocurrencies which present themselves as great investment opportunities, which come with huge risks. Pi Network offers mankind a different, low-risk and easy entry into the landscape of blockchain with a brand new web 3.0 experience. This is radically new. Although there is a large group of people who are ready to invest and risk their money with speculation, there is far greater number of people (7.5 billion to be precise) who have not yet joined the cryptocurrency world. We are coming after this group!

Finally, do not underestimate people’s greed. It makes sense that currently we don’t see much hype or FOMO, but wait until the price action begins. The tables then turn as people now have the opportunity to buy Pi at rock bottom prices, and even though all of us earned “some” Pi, we will be facing the same question: Should I buy more Pi? Of course it’s easy to say no right now, but generational wealth is often made when investing at rock bottom prices. Both pioneers and non-pioneers alike are going to be facing the inevitable pressure from greed of unmissable gains that could come from buying Pi early. This is the nature of cryptocurrency, to get in early — buy low, sell high.

In Conclusion

Although we cannot guess the starting price of Pi at this point, we can deduce from the available information that Pi Network is built to last and is here to stay. Whilst many people eagerly keep guessing price action for day 1, we invite you to notice that this project is built to sustain itself for the upcoming decades.

Furthermore, chances are, the open mainnet date will be announced in advance, therefor we will all have time to prepare, so we can be present at this event as it takes place. However, to know whether you buying or selling Pi was “the right choice” — remember: only time will tell!

That’s a wrap from us today!

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