Is Pi Network legit or a scam? Is Pi coin real or fake? At the moment, these are questions millions of people in the cryptocurrency circles are asking.
Many people are curious about what lies ahead as the Pi project approaches its conclusion. For some, it appears like easy money because it’s a promising idea that can be mined for free right now. Among the most contentious cryptocurrencies, there are a lot of unanswered questions and false information.
This article extensively talks about the Pi network and the thoughts people have concerning it.
What is the Pi Network?
Pi Network is a perfect example of the phrase, “If it sounds too good to be true, it probably is.” The Pi Network is designed to be a cryptocurrency you mine on your phone using the Pi Network app. With no start-up costs and no other equipment required, it’s easy to see the appeal.
While Pi Network has managed to build a large community of more than 33 million users, it has also gone years without launching a blockchain or its cryptocurrency, meaning Pi coins have no value. Here’s a full guide to how Pi works and if it’s worth checking out.
What makes Pi unique?
Pi Network is like a combination of a digital currency, an app, and a multi-level marketing (MLM) scheme.
You can mine Pi using your phone, which is its main selling point. Most miners utilize specialized devices because other cryptocurrencies that need mining, like Bitcoin, demand significantly more computing power.
The only thing needed to mine Pi is to hit a button on your phone once every 24 hours through the Pi Network app. Since no mining is taking place, it isn’t strictly considered crypto mining. At least not at this stage of development, you’re not verifying transactions. As a result of utilizing the program once a day and demonstrating that you are human, you are receiving PI coin vouchers.
You need a member’s invitation code to register on the app. With the referral system that Pi Network employs, you can increase your coin earnings according to how many users register using your invitation code. It’s stored in the app on your Pi. It is not possible to sell, withdraw, or trade it for other cryptocurrencies. The Pi Network website states that all of that will be possible when the main net starts in the third phase of its plan; however, a launch date has not been specified.
A brief history of the Pi network
Pi Network was started by two Stanford University researchers, Nicolas Kokkalis and Chengdiao Fan. Intending to create a digital currency for common people, they started working on it in 2018.
On March 14, 2019, which is popularly called Pi Day, they launched a white paper and the Pi Network app. The project’s core staff, Kokkalis and Fan, continue to be in charge. Fan is in charge of products, while Kokkalis oversees technology.
How does Pi work?
It doesn’t get simpler than the Pi Network app. To mine Pi, you press the lightning button on it. In addition, this initiates a countdown of 24 hours. To continue mining after this time, you must check in and press the button once more.
All you have to do is open the app and press the button once every 24 hours; you don’t have to leave it open to mine. The time of your registration determines your hourly mining rate. The rate of earnings for early members is higher than for later members. Creating a security circle or extending an invitation to new members can increase your mining rate.
Roles a user can play on Pi
There are four roles users can play on Pi:
- Pioneer: Mines Pi by tapping the lightning button. This is just the first stage.
- Contributor: You must add three to five other users to a security circle that they trust for them to contribute. For every person in their security circle, contributors receive an additional 0.2 PI every hour.
- Ambassador: You must utilize their invitation code to introduce new users to Pi as an ambassador. For every individual they invite, ambassadors might receive a mining bonus of up to 25%.
- Node: Uses their PC to execute the Pi node software. The testing stage of this software is presently underway. Multiple roles are possible for users. For example, mining Pi, creating a security circle, and inviting new members can make you a Pioneer, Contributor, and Ambassador.
Risks and fears of the PI network
Since Pi is a free app, there is no financial risk involved. When you log in to continue mining, the only thing you’re investing is time. Does Pi merit your time? That is the question. Some people believe there is nothing to lose. They won’t lose any money even if Pi never succeeds. If it succeeds, they will be able to sell the coins that were obtained with very little effort and time.
That perspective is one thing, but don’t count on Pi’s value increasing in the future. The project has been in development for a long time without ever being launched, and its coin is worthless. It has even been suggested that the mining of a cryptocurrency that users are unable to withdraw or use is a kind of sociological experiment.
It is important to note that your data, including personal information, information about how you use apps, and information about advertisements, may be collected and sold by the Pi Network app. Before you can purchase, exchange, or sell any of the future apps that are made available on the Pi Network, you must also provide the Pi Network with your “Know Your Customer” (KYC) information, which includes copies of your official identification. You probably wouldn’t want to download Pi Network if you’d rather control who has access to your data.
Reasons why people feel the Pi Network is a scam?
There are several reasons why people believe that Pi Network is a scam. These include:
- As of right now, no cryptocurrency exchange lists the Pi Network token. This implies that users are unable to exchange or sell their coins in reality.
- It is untrue that the Pi Network app mines cryptocurrency. Instead, it distributes currency to users through a mechanism known as “proof of stake.” This system is more vulnerable to fraud and is not as secure as conventional mining.
- The Pi Network team has not disclosed all of their financial information. There are worries that the crew is merely utilizing the project to garner money, with no true benefits being offered.
- Allegations have been made that the Pi Network software is a pyramid scheme. This is a result of rewards given to users who bring new people into the network.
So is the Pi Network safe?
It is safe to use the Pi Network app. Nevertheless, there’s no assurance that the Pi Network coin will hold any value down the road. Likely, the idea will never succeed because it’s still in its early phases.
Is Pi Network worth investing in?
I advise against investing in Pi Network. There is no assurance that the initiative will succeed, and it is far too dangerous if you are considering investing in it financially. Numerous other well-established cryptocurrency ventures stand a higher chance of success. However, using for free is okay.
Conclusion
Pi Network is a contentious initiative that has been called a fraud. I would advise against investing in this enterprise because of the numerous red flags. I advise investing in more established cryptocurrency projects that have a higher probability of success if you’re interested in cryptocurrencies.
There are a few more considerations regarding Pi Network in addition to the previously listed ones. First off, the project’s main net launch has not yet been finished. This indicates that the Pi coin isn’t a fully functional cryptocurrency just yet. Second, no details on the distribution or usage of the Pi coin have been made public by the Pi Network team. This complicates determining the coin’s prospective value.
In general, I think it’s dangerous to invest any money in purchasing the Pi Network. Nevertheless, one shouldn’t throw it out because it doesn’t need any money to mine it. Especially the people who have dedicated their time and effort to it. And what if it ends up being worthwhile?
Note: Please do not take this as a financial advice. Do your own research.
