Note: if you like this article(or not) and want to join the network, you can do so by following our invitation link. The registration system is invitation based, so if asked for invitation code you can use “BMS2019”.
You may have heard how exciting Bitcoin was back in the early days.
- Tokens cost nothing.
- Mining was effortless.
- Its value grew slowly.
Many early investors didn’t know it would ever become profitable. That’s why less than 1% of people own hundreds of BTC today. As soon as new investors came in, this reality quickly changed.
What Is The Pi Network?
After the 2018 crypto boom, three Stanford graduates thought: What if we could bring back those days where you mined crypto from your home? What if we overcome the current limitations?
They eventually became founders of the Pi Network, which aims to make mining possible for everyone.
Why Pi Network?
The Pi Network exists to make mining easier and accessible for everyone: as common as owning a phone! If you own one, you could start mining Pi cryptocurrency within ten minutes, for free.
Here’s the promise:
“Mining crypto can be hard(unless you use GUI mining software). Investing in crypto is risky. Too many of us are left out of the cryptocurrency revolution.
Pi makes crypto mining easy. Breakthrough tech allows you to mine on your phone without draining your battery.”
This idea raises many questions:
- What kind of technology have you found to go from requiring ASICs to just mine from your phone?
- If it works, can it help decrease the mining difficulty of any currency if implemented? If not, why does it only work with Pi cryptocurrency?
- If it’s so easy, by the time Pi tokens are worth more, many people will have five, if not six-figure Pi accounts. If the coin rises in value, will the network be ready to receive millions of investors selling Pi tokens for millions?
What drives millions of people to join the network is the fear of missing out.
- Remember what happened to Bitcoin in 2018?
- What if it happens again?
Mining from your phone works pretty much like earning coins for free. People hope that Pi cryptocurrency becomes popular to sell later. However, this project hasn’t fully developed yet, and cashing out Pi tokens won’t be available until the so-called Phase 3.
Although it only released in March 2019, it has been gaining popularity at a rate we shouldn’t ignore. Is it the real deal or just an overhyped non-sense? Let’s learn about it.
How Can You Mine Pi Cryptocurrency From Your Phone?
The founders have provided enough technical data in their official white paper. Although it quickly becomes complex for new investors, mining is surprisingly simple.
Download the Pi Network application, open an account, click on the Mine button, and that’s it. You do nothing by watching the number grow little by little, even with the app closed.
But what’s the system behind to make it possible?
Pi uses two algorithms that, unlike Bitcoin’s proof of work model, don’t have energy waste: Stellar Consensus Protocol and Federal Byzantine Agreements (SCP and FBA). The network nodes (computers) message each other multiple times to come to a consensus on what a block should be worth.
What would happen behind the scenes is every node messaging like:
- I propose we all vote for block A for the next.
- I vote for block A to be the next block.
- I confirm that the majority of the nodes I trust also voted for block A.
Finally, if agreed:
- A is the next block, and there could be no block other than A as the next block.
Of course, you don’t need to know how the machine works to make money with it. All you need to do is:
- Install the app and click the mine button every 24h.
- Refer as many people as possible to increase mining speed.
- Keep stacking Pi tokens until stage three completes and you can finally convert it to cash.
By that time, it may not be free nor viable to keep this model. That’s why early adopters get extra mining speed, which halves whenever the network reaches a certain number of members.
The Million Dollar Question
The current goal of the Pi Network is to create a peer-to-peer marketplace, making their token the most used cryptocurrency. It will require a user-friendly interface to attract as many people as people, which is already achieving.
The question is, can you really make money mining from your phone? When you first try the application, it looks so simple: you do nothing. Anybody could do it!
As the community grows, it affects the mining reward for each device, which also may affect transaction speed. Right now, Pi works as a mining reward and nothing else. There’s no interest in exchanging or trading until it becomes more valuable than $0,40 if it will ever be worth anything.
Think about Bitcoin. More miners and more technology increase the mining difficulty so that only the most efficient can win. The Pi Network, in theory, would continue to offer Pi mining rewards no matter the number of miners. Of course, that reward would diminish as that variable goes up, but it’s still something.
You can mine Pi tokens anywhere with your phone, which works on the background and consumes no energy from your battery.
Free money, you could say? It’s a matter of time. How long does it take you to earn one Pi? If infinite people joined the network, it would take you infinite time, but you’d still be making money(it will then depend on its market value). Not even early adopters escape from Pi halving.
However, if you arrive before the masses, you could stack a decent amount before the speed decreases, possibly trading Pi for more later.
Here’s the kicker: nobody knows if PI will ever be worth anything. It may as well fail and fall into oblivion. But does the outcome matter if you mined it for free, no effort needed? For newbie investors, it’s like getting free lottery tickets with an unknown chance to win.
Even if it’s only worth less than a cent in August 2020 and never rises, you’d still earn some easy bucks. Not a scam.
3 Striking Facts You Can’t Ignore
Back in 2018, we agree Pi Network may sound overhyped. Bitcoin just boomed over $10K. Some people achieved the crypto dream while others realized how ignoring the trend was a terrible mistake. And so, people started to create hundreds of coins since then: Pi would be no different.
But fast forward one year, we found some surprising facts to prove that wrong:
- From March 2019 till today, the Pi Network gathered over 3.5 million users. Remember that it is based on real valuable technology, and most altcoins never reach 1 million, even less in their first year.
- Since the ICO, Pi Network traded around $0.30. Within one year, it has raised to $0.35-$0.40, which is respectable for its volume. More surprisingly, Pi hit its all-time high on March 20th of 2020, which was the week most coins like BTC plummeted over 40%.
- The Pi Network(IUO) has millions of app downloads at an average 4.5-star rating, even though nobody has got “real” money yet. They continue to attract users as they’ve always done: word to mouth and zero advertising.
The Pi Cryptocurrency Verdict: Scam Or Opportunity?
From a first impression, anybody feels skeptical about an app that looks to offer free money. We shouldn’t forget, however, that Bitcoin and others started the same way. Although those opportunities may not exist today, they were instrumental in motivating early members and expanding the movement.
Pi Network seems to follow the same pattern.
At this stage, the plan seems to just be “grow the numbers, test the system, and we will take it from there.” For those of us who want a little more reassurance, there’s not much to go on.
Before we can convert this currency, the team must enhance the network’s security to prevent hacking and “bad actors”.
Despite the innovative consensus protocol, the network still finds itself in an early stage to make financial projections. It may become the next Bitcoin or fail like the other Pi(do not confuse IUO with PI, PChain). Who knows?
If one day, IUO reaches the level of today’s stable coins, thousands of stakeholders could sell high and revive the crypto dream. It may as well be just hype and go nowhere. What do you have to lose? Nothing.
There’s no reason not to join the network and earn some tokens. Join now, or regret it later.