- Pi Network is a mobile-based cryptocurrency mining platform that allows users to mine Pi coins by simply tapping a button on their phones.
- Pi Network will launch its public mainnet by the end of 2024.
Pi Network seeks to change the way cryptocurrency networks are mined. Unlike Bitcoin and many other cryptocurrencies, it is easy to use and requires no mining or software subscription that costs thousands of dollars.
The principal concept behind Pi Network is its mining system, which is powered by a mobile app. The app allows users to mine the PI cryptocurrency by tapping a button daily. This removes the requirement of expensive hardware, making cryptocurrency mining possible even for those who lack the technical know-how and/or capital.
The network’s operation is based on the distributed peer-to-peer system, which allows the buying and selling of PI coins inside the application. The PI is not currently directly tradeable on exchanges, but its network is in its third phase, known as the “enclosed mainnet,” with a full mainnet expected by the end of 2024. The service’s availability, coupled with its potential for future profitability, has attracted millions of users, with over 60 million Pioneers (miners) signed up by November 2024.
Understanding the Pi Network’s Growth and Value Potential
Pi Network uses a very different tokenomics mechanism. Mining rewards decrease as more users register on the network; the rate of decrease is halved as progress milestones are met. Users could initially mine 1.6 Pi per hour, however with the current setup of the website as of 2024, it now only allows 0.2 Pi per hour.
The forecasts for the price of Pi coins have been ranging drastically. Some analysts predict slow but steady achievements, perhaps seeing the Pi coins hit $0.8 by the year 2025, while others suggest great achievements whereby Pi coins are to hit $5 in the year 2030. However, there is optimism in Pi Network’s outlook due to the increasing numbers of its users, as well as the continuous development of the ecosystem.
Challenges and Uncertainties Surrounding Pi Network
While the Pi Network does provide a new idea for mining cryptocurrencies, it also has obstacles. One major unknown is the relatively long time it will take to launch the project. The launch is conditioned by several factors, including the completion of Know Your Customer (KYC) verification for 15 million users and the migration of 10 million users to the main net. It is expected to launch by the end of 2024.
Another challenge is the potential for market volatility. Because cryptocurrency markets are volatile, the price of Pi coins may be volatile after its listing on exchanges. Others want to retain their mined PI coins, intending to sell when the price is high, this could exert a massive supply on the market leading to lower price levels in the near future.
The Future of Pi Network
Despite these challenges, the future of Pi Network remains promising. The network has a mobile-first design, making it easier for new users to enter the cryptocurrency mining space. The continuous evolution of cross-chain capabilities in Pi Network and the opportunity to incorporate them into DeFi solutions adds more value to the growth profile.
