Pi Network - The new encrypted digital currency: Is it legal or a scam?

In general, due to my basic investment principles, if everyone on the street starts to talk about investment products, it is usually too late to invest in that product. My friend has been encouraging me to join his cryptocurrency investment group for months. When he mentioned that this is a free issue and does not require any money investment, this caught my attention.

I started to conduct some background research on Pi Network and found that it is not only a legal and innovative digital currency plan, but more importantly, from the perspective of risk-reward ratio, it is still the best time to enter the market. Of course, we cannot be sure whether this is a successful project, but what we lose is only some fragmentary time (this mobile phone software requires us to press the button above for a period of time), which will not bring you economical loss. If the project can be developed, this may be very valuable in the future.

In this article, I will introduce you to the fast-growing participants in the world of encrypted digital currencies. This is different from the previous idea, and the Stanford University team claims that this may be revolutionary. Millions of people have already registered to make money.

In this article, I will discuss the risks of Pi coin and how to participate in it. The most important thing is that this is free. Although it will not make money in the short term, if it becomes valuable in the future, we will be able to make a good profit.

What is Pi cryptocurrency and how is it different?

According to the team behind it, "Pi is a new cryptocurrency. For ordinary people, you can mine (or earn) from your mobile phone." It sounds simple.

It has two big selling points:

Anyone can use it, and it's easy to mine (or earn). It gives people the opportunity to obtain more economic value without having to pay for banks, technology giants and other intermediaries.

We found that it is very easy to make money, as long as you have a mobile phone can do this, just download the Pi app (available on android or iPhone), and then check in only once a day. It consumes no battery power and the data is negligible, so you hardly know it is running.

1. This project is attributed to three PhDs from Stanford University, namely: Dr. Nicolas Kokkalls (Technical Leader), Dr. Fan Chengdiao Fan (Product Leader) and Vincent McPhillip (Community Leader)

2. The company only provides services but not products. After downloading the Pi Network app, you need to click the lightning bolt symbol on the app every 24 hours to confirm that you are online. This will start mining at a predetermined rate (currently 0.20pi/hr) on the mobile device without draining the phone battery. After completing this operation, you can directly exit the application without interrupting the mining program.

3. This is a free application. It can be downloaded for free from Google Play or Apple Store (no ads). You can search for pi, pinetwork or minepi, and you can find this software.

4. We can only join based on other members' invitation links. You can speed up mining by inviting other members to join your team.

5. After three successful mining cycles (24 hours each), you will be eligible to become a contributor, which will also speed up your mining.

6. The project was launched in March 2019 at a rate of 3.1 Pi/hr. By November 2019, the network has reached 1 million members, and the current rate is 0.20 Pi/hr. The next milestone is to have 10 million members. It is not clear whether the mining process will stop at this stage or whether it will continue to slow down.

7. In the Pi Network white paper, the summary description of the technologies they use is as follows: For Pi, we have introduced an additional design requirement, that is, the adoption of a consensus algorithm (the process of recording transactions into a distributed ledger), which is very effective for users. Also very friendly. The consensus algorithm they use is the Stellar Consensus Protocol (SCP) designed by David Mazieres, a professor of computing science at Stanford University, which is also described in the Pi Network white paper.

What can Pi Cryptocurrency be used for?

Currently, the real answer is: no. There is a long-term plan behind Pi. Ultimately, they intend to create a peer-to-peer market for goods and services, allowing you to directly purchase goods and services using Pi. You will also have the opportunity to exchange Pi for fiat currency (such as £, € or $). All of this may be achieved in the "phase 3" of the project plan.

Understandably, you will want to know what "Phase 3" is. The first stage: attract enough users. It was launched in March 2019 and completed one year later.

We are now in phase two, which is mainly a testing phase, where users can voluntarily test the "node" software on their computers to decentralize the network.

Therefore, the date when Pi enters Phase 3 is uncertain and depends on the progress of Phase 2. None of us knows that it will be several hours, years, or even not at all. The lack of uncertainty about the future development is also one of the important reasons for our doubts about the project.

Reasons to doubt Pi Network

To be honest, I have always been skeptical of digital currencies. You can imagine a currency out of thin air, exist electronically, and then suddenly become worthwhile, purely like alchemy.

As far as Pi Network is concerned, it was developed by only 3 people. To be honest, this is not the way I envision the digital currency revolution. Of course, if Pi becomes mainstream and supports hundreds of millions of users and billions of transactions, the team will have to scale quickly.

The developer has developed a long-term white paper on the working principle, advantages and future of the currency. But for the rest of us, the FAQ is a bit easier to understand.

One thing is clear: Pi is not currently directly usable money. It is described as "a long-term project whose success depends on the contributions of its members".

Although the content of the white paper is lengthy and quite comprehensive, the crux of all these questions is when it can become a viable currency. Frankly, no one seems to know (the developers are included). At this stage, the plan seems to be just "increase the number, test the system, and get it from there."

Reasons to believe in Pi's encrypted digital currency

The network may consist of only 3 people, they may only work in the bedroom, but they are very smart. Apart from that, they are in a leading position in this regard: this is not the get rich quick program they sell (unlike many other currencies out there). Their intention seems to be to develop something useful, something better.

For the current smaller team, many small ideas come from dirty garages and cramped bedrooms (look at Apple and Facebook).

The Android version of the app has many good reviews. Without advertising, in March 2020, only one year after the launch, there were more than 3.5 million people on the Internet that entered the second phase, which left a deep impression on people.

In the final analysis, there is no conclusion about cryptocurrency. They didn't provide suggestions, they just invited you to join and see what happens. Considering that apart from downloading the application once a day and opening the application once a day, you don't need to make any other investments. This seems to be a reasonable choice, especially when you think this may become a reality.

In May 2020, Pi Network started running ads on its platform. The creator described it as a necessary step in order to fund various expenses and make it self-sustaining. These ads seem to be relatively non-disruptive. If it can help them invest the platform's development funds into feasible projects, then I will join their projects.

In order to join Pi Network, you need to use the invitation code to join. If you don’t have an invitation code, you can use my code: xiaodong20210314 or through this link: https://minepi.com/xiaodong20210314

There are a few things you can do to increase the speed of mining on the network: Joining other active miners is the easiest and most obvious way, so it's worth inviting any interested friends and family to participate.

But please note that you can only make money from your own direct network, not from other people's networks. Therefore, it is not a multi-level recommended model. Currently, there seems to be no limit to the number of people who can join your network. Therefore, if many people join your network directly through your invitation link or invitation code, you can mine more Pi coins. Obviously, our actions have promoted the development of the platform.

Conclusion

Although it is still in its infancy for Pi, its growth rate cannot be ignored. For us, it's worth a try. In addition to wasting time, you have almost no loss. Of course, we may end up doing useless work, but if it achieves its goals, it will be quite beneficial. In this case, getting in early might end up very well!