Pi coin has no value, can not be traded on any change, doesn ’ thyroxine so far exist on an actual blockchain, has no wallet, and is mined by users logging into the Pi app and clicking a button .
Given those cryptic attributes, it ’ randomness no curiosity many interested parties are left wondering “ what is Pi cryptocurrency ? ” We ’ ll explore this strange new crypto in this guide.
What Is the Pi Network?
Pi Network is a new crypto network that was purportedly founded on March 14, 2019. Like most cryptocurrencies, Pi Network was created with the purpose of decentralizing finance in decree to make fiscal tools available to a wide-eyed exploiter basis. What makes Pi different is that it was designed to be mined on smartphones .
The estimate is that anyone can participate in the network ’ mho activities ampere long as they have a smartphone and internet connection .
The Pi Network app can be downloaded from either the Google Play or Apple App stores. The net grows through a referral organization : mine sessions can ’ deoxythymidine monophosphate be completed without a user successfully referring a new drug user .
As of late November 2021, the Pi Network had reached 29 million users .
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How Does the Pi Network Work?
Mining Pi international relations and security network ’ metric ton in truth crypto mine at all. There ’ s no proof-of-work being performed as there would be with Bitcoin mine. Anyone who has studied Bitcoin and blockchain engineering will decidedly find this expression of the Pi crypto network confusing, to say the least .
To “ mine ” Pi, users simply log in to the app, click a push button labeled “ mine, ” and receive coins .
Keep in mind that there is no Pi Network to speak of at the time of this write and the Pi Coin can not be traded on any central. Pi network mine international relations and security network ’ metric ton mining. This begs the question — is anything very happening here ?
It seems like anyone could create an app like this to make it seem like a modern cryptocurrency is being launched, without any evidence of the usual work being done .
The things that make a cryptocurrency a cryptocurrency — like a blockchain net and a tradable token — don ’ thyroxine even exist for Pi .
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How Does Pi Coin Work?
The short answer is : it doesn ’ t. The Pi mint is, at this luff, merely a number on people ’ south phones .
The coin has no measure and can not be traded. In fact, it can ’ t even be withdrawn from the app because there ’ s no such thing as a Pi wallet so far. The app is supposed to turn into a wallet once the mainnet is launched, yet another aspect of Pi that is bizarrely unique .
Crypto wallets normally exist as open-source software that can be accessed by anyone .
What Is the Value of Pi Cryptocurrency?
The Pi mint is presently worthless. It ’ s not listed or traded on any substitution, and therefore can ’ thymine be said to have any value .
According to the Pi Network ’ s white paper, the native cryptocurrency won ’ triiodothyronine be launched until phase 3 of the stick out, when the Pi Network mainnet launches. No one can say when this might be, as developers haven ’ thymine given any direct clues about a timeline .
Some people have speculated that the creators have every bonus to delay the launch of Pi mint. Once the coin is listed, there could be a deal craze. If the price drops low adequate, people might not find it worthwhile to log in to the app .
On the other hand, while the launch remains elusive, in hypothesis Pi ’ s value “ could ” be vitamin a eminent as a user ’ south resource believes. angstrom long as people don ’ t have answers to the wonder “ what is Pi cryptocurrency, ” they ’ ra rid to believe that it could or could not be the next big thing .
What Is the Security Circle in Pi Network?
Pi doesn ’ triiodothyronine use a consensus mechanism such as Bitcoin ’ s proof of work or Cardano ’ s validation of post. rather, the Pi network claims to secure its distributed ledger by having users vouch for one another ’ second credibility.
The term “ security circle ” in relation to the Pi net refers to a group of 3-5 users who put faith in one another not to conduct deceitful transactions. It ’ south indecipherable how this trust is established, what it means, or what might happen if person violates that trust .
Is the Pi Network a Scam?
It ’ south intemperate to say whether Pi is a scam, because people haven ’ thyroxine even put money into it. If this is a crypto scam, it ’ s unlike most that have come before it .
Over the years, there have been a batch of initial coin volunteer ( ICO ) scam, cloud mine scams, decentralized finance ( DeFi ) rug pulls and hacks, and countless other cryptocurrency scams .
Some crypto enthusiasts believe that most altcoins are, in fact, victimize. There have been thousands of bright projects over the years that have come and gone. They tend to go through a cycle of being recognized as a bang-up fresh theme, attracting large sums of money, then crashing once everyone realizes the estimate doesn ’ deoxythymidine monophosphate work in practice the way it did in principle. The crown 100 coins by marketplace detonator change quite often, early than Bitcoin, which has always maintained the # 1 spot .
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Reasons Pi Network Might Be a Scam
It ’ s besides early to say for certain whether or not Pi is a scam. But the Pi model is fishy in that it has a structure similar to a multi-level market ( MLM ) schema or a pyramid schema .
In MLM schemes, participants are rewarded for bringing new people into the system. When person joins, the person who brought them in gets rewarded. The more people person adds underneath them, the greater their rewards will be .
In the Pi Network, users have to refer other users to be able to perform mine activities on the network. thus, in a similar fashion, the network could disproportionately benefit early users while providing little rate to others .
There are extra reasons to suspect that Pi might be a victimize :
• The app provides no utility to its users .
• Users are putting prize into the app by using it and submitting their data, although they get nothing of any tangible measure in retort .
• The founders have already profited from the app through monetizing video ads .
• The marketing of the network places a heavy vehemence on the academician credentials of its founders, like other scams in the past have done .
• There ’ s no clear road map as to when the Pi mainnet will launch and the token will be listed .
The Takeaway
Pi cryptocurrency is not technically a cryptocurrency yet. While developers promise to launch a mainnet and a token at some detail, no roadmap has been laid out. It ’ mho besides not clean how the network might be secured given that there is no blockchain or consensus mechanism, meaning there ’ s no way for nodes to sync up and agree on which transactions are valid. In fact, it ’ s not clearly if there are nodes in the first place .
There are a lot more questions than answers about the project. And there ’ s no token to speculate with, so investors will be disappointed .
For investors looking to trade more established cryptocurrency, SoFi Invest® offers trading with more than two twelve cryptocurrencies, including Bitcoin, Chainlink, Ethereum, Dogecoin, Solana, Bitcoin, Litecoin, Cardano, and Enjin Coin .
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Photo credit : iStock/Cn0ra
SoFi Invest®
The data provided is not meant to provide investment or fiscal advice. investment decisions should be based on an individual ’ s specific fiscal needs, goals and risk profile. SoFi can ’ t undertake future fiscal performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, extremity FINRA / SIPC. SoFi Invest refers to the three investment and trade platforms operated by Social Finance, Inc. and its affiliates ( described below ). individual customer accounts may be discipline to the terms applicable to one or more of the platforms below.
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