What Is the Pi Network? Is Pi Coin a Scam?
Table of Contents
- By Greg Brown
- Mar 20, 2023
Bitcoin changed the financial landscape in 2009; according to CoinMarketCap, there are now over 21,900 cryptocurrencies with a total market cap of $850 billion. What each crypto-asset has in common is a distributed ledger known as a blockchain.
Blockchain is a database technology that has the potential to serve a wide array of industries around the globe. The technology is nearly impossible to hack. What makes blockchain unique is its decentralized nature. Rather than a single administrator, the database can be maintained with identical copies or nodes at any global location. As fresh data is added to the chain, all nodes are updated. Before a new block of data can be added to the chain, a majority of nodes must confirm its legitimacy.
Crypto are digital assets with value like money, and all cryptocurrency transactions are recorded on a blockchain. The first cryptocurrency was Bitcoin, and it became synonymous with blockchain. The Pi coin is the native crypto of the Pi Network.
Bitcoin and other crypto-assets exemplify a significant technological and financial investment that should be considered risky. Investors should only place money in crypto assets they are willing to lose. However, if you are international, crypto is the name of the game.
Crypto, and especially mining, has always been a mystery for most of us, and the Pi Network makes it easy
The Pi coin is a crypto asset that has yet to be listed on any major exchange and has no value as of February 9. Pi does not exist on a blockchain, and it has no wallet. The only way to get a Pi coin is to download the app and mine the coin. The app allows users to grow their Pi holdings and create a digital wallet.
Established by Stanford academics in 2019, the Network is a referral system for users to download the app, press a smartphone button, and start mining. Launched on March 14, 2019, the Pioneers, or Pi miners as they are called, are the building block for the Pi crypto. The member growth has been phenomenal, with over 33 million, and no telling where the money ends up.
The Pi Network differs from other cryptocurrency mechanisms in that it uses a proprietary methodology termed the Stellar Consensus Protocol. SCP allows for a decentralized, leaderless network to reach a consensus outcome on some type of decision. It uses a mechanism called the Federated Byzantine Agreement, which is a new one.
The Pi Network app is only in the beta stage.
The Pi Network has been a buzzword for years, with millions of followers in cryptocurrency circles. According to a statement issued by the Pi Network on CoinMarketCap:
“Pi is currently in the Enclosed Network period of Mainnet and is not approved by the Pi Network for listing on any exchange or for trading, and Pi Network is not involved with any purported postings or listings.”
To clarify things, Mainnet is used to describe a fully operational and working blockchain. An enclosed Mainnet such as the Pi Network is live with firewalls preventing external activity.
Is the Pi Network a Scam?
No one knows whether the Pi coin or its Network is a crypto scam. There is no cost to download the app, and their Network (enclosed Mainnet) is not open to the public. Users can mine the Pi coin from the app, but there is no one to buy or sell.
The app, at first glance, is very impressive, with lots of tabs and buttons to look through. After the download, users are asked to create an account with either their Facebook or Apple logins. The best option is to give the app a phone number and then continue. The first action for new users is to start referring other interested parties so they can mine the coin. (hello Bernie Madoff)
CoinMarketCap gives an exchange rate for the Pi coin, similar to Forex pairs. However, there is no way to sell or purchase the Pi coin. With all the hype in recent years, the Network and its coin have yet to launch, giving many of its users reason to be concerned. However, if you are a long-term player in the crypto market, the Pi Network could be just the thing.
The debate over the Pi coin should only grow larger with each million they add to the roles. The premise of the coin and Network is ingenious. Every member added to the iPhone or Android phone is mining within minutes. A first, as far as I can see. Once the download is complete, push a button, and the user mines the Pi coin.
Refer to the CoinMarketCap statement above as to the Pi Networks’ status. When it lists on the Mainnet is anybody’s guess.
The official state of the Pi Coin is there are no coins officially available for trade, their Mainnet was not officially launched, and there have been no transactions. These strikes make it challenging to find value and go to the catching fire syndrome of why there is so much interest in the coin. The user base doubled from 2021 levels and continues to get hotter.
The Network is selling the ease of use and mobile-first to mine crypto because there is no other sense of value to the Pi coin. This is an excellent way to get your feet wet and learn crypto mining. The biggest farms in mining consist of thousands of servers, consuming lots of energy.
The Pi Network is an excellent way for the uninitiated to get involved with finance and crypto. It is a lot like the direct brokerage’s industry from two decades ago; people do not want to be charged for taking control of their efforts and money.
The website and app are full of reading material and are very user-friendly. The download and account creation on my phone was quick and efficient. In less than two minutes, I was mining for crypto. Users should understand, however, to not risk any money until a solid profit or product is on the horizon.