Robert Kiyosaki – “Financial freedom is available to those who learn about it and work for it.”
The Pi network is an impressive mobile app that is growing in popularity, it may be that it is a new application to you.
In this post you will learn what Pi Crypto Network is and how it is making money.
What is the Pi Network? Pi network is basically a mobile app which allows you to mine crypto currency just by using your phone.
This application is 100% free and only takes about 2 seconds per day to be able to mine coins from your mobile. (with unnoticeable battery consumption).
You can think of this as a more widely accessible version of bitcoin because there is no requirement to purchase massively expensive mining equipment such as GPU’s to cash in on crypto.
In fact all you need is a mobile device and connection to enable personal mining. Download the app and if you want to sign up use the invitation code yptzy.
Setting up your account takes a maximum of 2 minutes and then 2 seconds per day to mine, it’s the most passive method of mining crypto, it’s a no brainer when choosing to join the pi network. People mining this way are known as pioneers and act as nodes for the network.
So how does the Pi Network make money? When users download the app and choose to mine, they become a node on the Pi network, this validates the network and helps to keep it secure. With more members joining daily, the network becomes more secure and more attractive to investors.
Pi coins are due to be released onto the crypto market during 2022. This has good and bad points as there is no solid answer as to what pi coins are worth, many people speculate about the price however before 2022 the pi coin doesn’t have any fiscal value.
Pi network intends to build a market place for consumers and allow developers to create apps on the block chain creating a decentralized, digital economy with no central figure of control. Im excited by the Pi network, the people behind the network are called the Pi community company.
Like any company they cannot keep everybody happy and did have to deal with a lawsuit by a former employee saying he was treated unfairly. Whether he was or wasn’t, isn’t really relevant for the success of Pi every company has internal difference of opinion from time to time.
However with the lawsuit going to court, confidence and reputation can take a knock. Some hidden information was released to the public eye giving details of a great outlook for the company financially but indicate some lack of communication/ cooperation within the core team.
What is S.A.F.E? SAFE is a Simple Agreement For Future Equity, with company documents becoming public we can see that $800K were invested in the early days of the project in return for equity at a later date. This should give confidence to those looking at joining the network today.
SAFE allows early investors to realise gains easily or perhaps buy into Pi’s IPO at a discounted price because they took on more rick at the start, for example when the Pi network goes pubic at some point in the future and shares are for example $2, those early investors may be able to buy in at 1.5$ as a reward for the risk they took.
However this being said its great that there is still plenty of time to mine pi coins, one thing you should remember is that once the Pi coin is officially released onto the crypto market in 2022, mining will stop. It will be impossible for anymore coins to be generated/ mined. This means the amount of coins will be capped. This is good news if demand increases because unlike ether or doge coin generating more and more coins each year, pi coin is finite. This means with supply being limited, if demand increases, price of pi coins will be forced upward.
We can also see from these disclosed files that in Feb 2020 Pi was already valued at a wopping 20M$ This was when only 3.5M members had joined. As of March 2021 Pi has over 14m members, this is a 4x growth. Baring in mind that February 2020 price tag for Pi was based on the number of members, this means that we can confidently say Pi is worth around 80M$.
This is similar to getting into a stock like tesla early before the company officially goes public. During IPO of a successful company like Tesla, the stock is in demand meaning the price goes up and the shares you have increase in value.
Founders also put a lot of funds into the company in the early days, to avoid cash flow problems founders put in their own money and run small ads on their app, this is a good sign as they clearly believe in the project and can generate substantial revenue from ads. Users on the app really don’t mind because the effectiveness of mining and usability of the app is unaffected.
Pi have to finance the team, maintain servers and pay dedicated employees and contractors. At first I was against ads and stopped mining for two weeks, then I realised any company must first be able to finance itself in order to stay afloat and grow, so realistically it’s a great thing they are able to support themselves from ad revenue, however the real value of pi network will be realised after the coins are released onto the crypto market.
Developers will earn 25% of all coins when they come into play, so in total there should be around 77B coins meaning developers will get around 15B coins, at 2$ they will have around 20B$. Making founders instant billionaires, the average person will also benefit because they will have around 1500$.
Running ads within the app roughly makes the pie team 370,00$ per month to help develop the app and pay contractors but the real value will come to fruition upon release of the coins into the official crypto market space, making founders Billionaires.
Adding to this also makes for great news for average people who choose to mine on their mobile phone, generating a lot of capital for someone with 1000 coins (based off of conservative estimates) would make around 1500$ and those with 10,000 pi coins would make around 15k$ and those with 100,000 coins would make around 150,000$
Some skeptics of the Pi Network say the lack of publicly available source code is an issue however Pi source code is permissively licenced under MIT Licence. Adding to this some say Pi Network is a scam to collect users time & data.
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Hope you enjoyed this read and have a great week see you next time for more crypto content.
“Cryptology represents the future of privacy and the future of money” Orlin Grabbe (famous economist) said this nearly 2 decades.