What is Pi coin? What is Pi network coin value?
What is Pi coin? What is Pi network coin value? Previously dinner, even from Bitcoin or even blockchain is not very clear to friends that he was there to dig Pi currency using a mobile phone, it makes me too surprised, so I asked a few days few A friend, it turns out that there are really a lot of people mining Pi coins, so I spent some time studying what Pi coins are these days? Just need to mine Pi coins through a mobile phone to enter the world of cryptocurrency? And is Pi coin just an air coin with gimmicks?
First of all, what is Pi coin?
Pi Coin is a cryptocurrency launched by Pi Network, a team from Stanford University. Pi Network hopes to create a cryptocurrency network that everyone can participate in so that everyone can start low-cost mining through a mobile app. Pi coins are all mined by users, but the team's proposal is to create a P2P network that is better than Bitcoin, and even make Pi coins a currency with a value greater than Bitcoin.
Before writing, there was news that Pi Coin was listed on the FUBT exchange on March 14, 2020, but it is suspected that it was not promoted by the core team, because as mentioned above in the App, it is reasonable to say that it is not possible to withdraw coins from the mobile app at this stage. In addition to the recent panic in the financial market, it is doubtful that the value of the currency circle has been halved. Therefore, it is doubtful that Pi futures (contracts) should be listed, which is the so-called IOU (I Owe You). Currency, detailed later.
Pi Network project development plan:
Phase 1 — Design, Distribution, Trust Graph Bootstrap: It is to allow users to verify that I am not a robot to mine and not to list PI coins. It is to allow users to accumulate Pi coins, and then you can't buy Pi coins. Can mine through mobile phones.
Phase 2-Testnet ( Testnet ) entered this phase around April this year. It is the process of using testnet to run nodes before opening the mainnet . I won't say much about the technical aspects.
Phase 3 — Mainnet ( Mainnet ). Simply put, it is the stage for Pi Coin to be listed and Pi Network for large-scale commercial use. The most important thing is that it will ask you to verify your true identity. Everyone can only have one Pi Network account. , I personally think that identity authentication is a very important part. How many people are willing to authenticate? How to solve the problem of personal information privacy? All have to wait and see.
On 2020/8/29, Pi Network has launched a free 100,000 users for KYC certification, and these 100,000 are randomly selected by Pi Network through the App. Therefore, if they are not drawn or are drawn without authentication, they have to wait for the next batch At this stage, the Taiwanese have to verify through passports.
At the beginning of November, the official had asked each pioneer to determine the name and if the name is different from the actual verified name, the coin cannot be withdrawn. This mandatory requirement also means that the main net launch time is one step closer.
Pi Ecosystem Pi Ecosystem
Pi Network's ecosystem governance
Pi Network divides the Pi coin ecosystem into two stages of governance (depending on whether the number of users exceeds 5 million)
1. Preliminary Governance Stage/Temporary Governance Model (Provisional Governance Model, the number of people is less than 5 million): In fact, there is no complete organization or foundation to build this ecosystem. If you have ideas, you can use apps, letters, and web pages. That's it for contacting the core team.
2. Constitutional Convention mode: It is based on the selection of users from the contributor level to create a committee to manage the Pi ecosystem. It may be similar to the current Ethereum Foundation, etc., or it may be The committee will be divided according to the region, because the selling point of Pi coin is based on the community, so there may be a Pi committee in Taiwan, a Pi committee in Japan, etc.
The more interesting part is how the core team divides the 5 million line, is it their estimated minimum profitable user level or this is the standard line for financing, but it can be speculated that they are confident that they will be socialized in a few years The group operates to the level of 5 million people.
The latest data released on February 16, 2021, is that users have exceeded 13 million, January 27 of 2021 is 12 million, 2020/12/08 is 10+ million, 11/22 is 9.5+ million, 9/15 In order to break through 8+ million people, the 7/7 announcement is 6+ million people, and the 2/26 is 3.5+ million people. It can be seen that the rapid growth rate is a good thing. With the rapid increase in the number of people, mining efficiency will only increase. The lower, please join as soon as possible, and at the same time persevere, the development team continues to run, the main network is about to go online, and the time to harvest the wool is almost here).
***Note: On 11/21/2020, Pi Network officially stated on Twitter: “When Pi reaches 10 million hired pioneers, the mining rate will either be halved or reduced to zero. The core team is currently analyzing the pioneers The reaction of the readers at the Pi conference and research on this issue. When we reach 10 million, we will decide whether to reduce by half or reduce to zero.” Then on 2020/12/08, when the number reaches more than 10 million, and Instead of stopping mining directly, they choose to continue with the halving. Individuals who halve mining will be more conducive to future value increase. Although it will increase the total supply, at this stage Pi Network will rely more on traffic to be converted into the gold flow. Continue to increase Pioneer is conducive to its added value.
There are four levels of participants in Pi Coin World :
Pioneer: It is the most basic user. There are users who conduct robot authentication and mining through Pi Network App every day, and they can conduct various transactions or use various functions on the App.
Contributor: In addition to the above-mentioned habits of basic users, if you help Pi Network to confirm the credibility of other users and build your own trust network, if you know and trust a user, you can Press Trust to build your own security circle (Security Circle), so that you become a contributor level. The purpose of the security circle is for future transaction security authentication (similar to node authentication on the blockchain), so it’s best to really It is better to add what you know and trust, but at this stage, if you only mine, adding a security circle will increase your computing power (but up to 5 people).
Ambassador: Invite outsiders to join the world of PI coins and you will be upgraded to an ambassador level, which is easy to understand.
Node: In the world of the blockchain, there must be nodes. After all, if you want to transmit information on the blockchain, miners must collect information on the nodes and package them before sending them out. Therefore, people at the node level, except through the most basic mobile phones For mining, will also use the "Pi node" software on the computer to maintain the smoothness of the Pi network. Then, according to the white paper on the official website, the core team has not yet released the Pi node software. It is not high enough, so I feel that it will take a while to go public, and then Pi Network adopts the Stellar Consensus Protocol (SCP).
It is worth noting that the difference in user levels will affect the amount of each mining.
Pi coin supply and output
The total supply of Pi coins = M (the number of participants is determined, and the upper limit is 100 million) + R (invitation rewards are given at a fixed ratio) + D (developer rewards, increased according to the behavior of contributors, no upper limit)
M: The special thing about Pi Coin is that it is not like Bitcoin. It has a set quota. His quota increases with the increase in the number of participants, which means that as long as one more person is added, the supply of part M will increase. , To allow all participants to mine at that time, but he set a limit of 100 million people, which means that as long as there are more than 100 million people, the supply of part M will not increase, and then the formula of M ∫ f(P ) Is a diminishing logarithmic function, which also means that the earlier people who participate in the mining reward will use more , as the number of people increase, the mining reward will decrease , by 7/7, the total number of participants has exceeded 6.5 million.
R: It is the supply that varies according to the number of inviters. As long as one more person is invited, the inviting party and the invited party will each have 25% more mining revenue. Pi Network does not set a limit on the number of inviters. I personally feel that the white paper is not very written Clear, but I guess it should be linked to M. When it reaches 100 million people, no amount of people can be invited to increase the supply of R project.
D: According to the users (Contributor activities), rewards are given. Every time a person is added to the safety circle, it can increase by 20%, but the calculation power can be increased by up to 5 people, so the calculation power can be doubled, so it is still with M The +D hook, although there is no clear upper limit, will still be scarce as the number of users increases in the future.
Judging from the explanation of the supply volume of the white paper, it is found that Pi Coin does not have a fixed amount like the Bitcoin network. Therefore, some of the characteristics of Bitcoin (such as high inflation resistance) cannot be directly used to analyze the value of Pi Coin , And then we can also find that the Pi currency issuance logic is to accumulate a large number of users and to maintain user activity , which is also related to the future development model proposed by the core team, and when the number of people exceeds a certain number, the mining volume will no longer increase At the same time, Pi coins will become scarce. At this time, the price of Pi coins will increase more easily, but the main source of value is whether it has a good profit model.
Pi coin total supply
According to the 2019/November estimate on the chain: "Based on a simple and conservative estimate of 1 million people, 600,000 people dig by one person, 390,000 people dig by themselves after the safety circle is full, and 10,000 people invite more than 3 people. The estimated result is , The total amount of mining in March was 2.22 billion Pi."
But personally feel that this estimate is seriously underestimated. In fact, the number should exceed this. After all, I think the number of people who will start mining is still in groups. The proportion that will not be so high is to mine alone, but this aspect needs to be It is confirmed that according to the total supply of large mainstream currencies on the market at present, the total supply is far more than this number. If the tokens are based on mobile P2P payment, the number will be a lot (can you use less for everyone? , You can’t always trade with a few yuan of tokens to pay, which is not in line with modern people's habits), reference: XRP (Ripple) has 100 billion, XLM (Stellar) is 105.2 billion, and TRX is also 100 billion.
Pi Network's future development
Before talking about the price of Pi currency, we must first understand the profit model of this thing. Like stocks, cryptocurrencies are judging the expected value and profit model of value to determine the real currency price. Otherwise, it can only be air currency.
According to the white paper, Pi Network may have three business models in the future:
Pi ' s Attention Marketplace (Attention Marketplace): Simply put, it sells advertisements. He hopes to attract advertisers by accumulating so many users. Personally, he thinks that Pi Network is not profitable from advertisements , The reason is that in addition to quantity, modern marketing is more important than precise marketing. The company is willing to spend money when it is valuable. However, in the early stage, without identity authentication, all Pi App users, except for the commonality of accepting cryptocurrency, seem to be unable to spend Summarizing the commonality of any user to the manufacturer, it is difficult to conduct accurate marketing. If the advertisement is inaccurate, the willingness to pay is reduced. However, when entering the third stage of development, each account has been authenticated, although it is still I don’t know the identity authentication procedure, but if the procedure is not complicated and does not require too much privacy, the conversion rate may be quite high, which may increase the possibility of advertising business. (Update: In the second quarter of 2020, Pi App has introduced an advertising system, and every time you open it, you need to watch ads for at least five seconds)
Pi's Barter Marketplace (e-commerce): This is currently a business model that I personally think is more feasible. As long as it accumulates a large enough user base, it may be able to develop, not to mention the current large-scale e-commerce groups such as Alibaba. Enabling their platform in the form of blockchain or encrypted currency feedback, so this aspect may be a very feasible business model for Pi Network, but at this stage, the core team does not seem to have launched any specific measures, which need to be verified.
Pi's Dapp Store (Dapp Mall): I hope that Dapp developers will develop on Pi Network’s public chain. I personally think that Pi Network is well-known, but for the public chain, the most important thing is its technical background. In terms of Network, whether his public chain can attract other developers to invest, I think it is relatively uncompetitive. Most developers still choose Ethereum and TRON public chains to invest. According to DappRadar's information, The number of daily active independent wallets on the Ethereum blockchain in January 2020 increased by 82%, from 9,264 to 16,840. (Update: At the end of June, Pi Network has opened the Dapp Platform for developers to use, but the current usage status has not been disclosed)
In addition to the three Pi Network mentioned in the white paper, I personally think that if Pi Network can make good use of the non-falsification and anonymity features of the blockchain, perhaps after identity verification, users can choose to let users decide whether to sell themselves. Information , such as interests, eating habits, etc. useful to businesses. If the response is good, in addition to strengthening the aforementioned attention market business, you can also open up other business opportunities, but this model also involves privacy and security. Pi It remains to be seen whether Network can achieve this.
Pi coin price (IOU price)
The Pi currency prices that can be found at this stage are all IOU prices. IOU is the exchange that sells futures that have no online tokens in this form, and promises to deliver real tokens after the project goes online. In short, IOU It is equivalent to an IOU guaranteed by the reputation of the exchange. Before the real tokens went online, IOUs could only be traded on the exchange, usually unable to deposit and withdraw and lack transaction depth. Therefore, whether it is a short-term private placement price of hundreds of times or the seemingly beautiful spread of IOUs between exchanges, None of them have too strong reference significance, but they can still be used to increase confidence and keep themselves motivated to mine.
According to the transaction price on FUBT (2020/10/11 16:45 UTC+8):
It can be found from the above figure that as of 10/11, the Pi futures price fell at USD0.2/Pi, and the average price in the past 10 weeks was USD0.3216, which is calculated based on the mining efficiency of 0.41π/hr (safety circle 100 %, the basic mining rate is 0.2π/hr and at least one partner mines at the same time), the reward for mining in a day is about 9.84 Pi coins, the value is about USD1.968-USD3.165/day, just look at this calculation In fact, the rewards are very sweet, but the actual situation should not be so ideal after listing, because IOU can’t show real buying and selling pressure (especially selling pressure), because in theory, this kind of community-mined cryptocurrency , It will be smashed immediately after listing, and everyone assumes that the cost of your mining is very low, just remember to press it once a day, plus some mobile phone power is consumed to maintain the mining background operation, because this is like a cost The price can be ignored as zero, but I personally believe in the hype space of Pi coin, because Pi coin has already gained popularity in the community. If IEO is selected by a big platform then, there will be a lot of room for hype. Please don’t do too much. Wait a little longer, and the price will be realized when the price is sweet.
Disclaimer: The above analysis is for reference only. Investment judgment is still based on your own judgment.
If you are curious about Pi currency and want to mine together, you can click this link to download the app and enter the invitation code:mudasirhussain41, Take 1 Pi coin and dig together, both parties will have a mining bonus.