▎Can Pi Network Outperform Bitcoin? Analyzing the Potential of Pi Coin
A lesser-known cryptocurrency project is positioning itself as a major disruptor in the crypto landscape. Launched in 2018, Pi Network has quickly gained traction, attracting over 50 million users, primarily from emerging markets.
▎Pi Network's Ambition to Surpass Bitcoin
Founded by two former Stanford University developers, Pi Network aims to establish itself as the leading cryptocurrency. The project seeks to improve upon Bitcoin, which was originally created to revolutionize the financial sector.
Pi Network addresses several critical issues associated with Bitcoin. For starters, unlike Bitcoin, anyone can mine Pi using just their smartphone, eliminating the need for the expensive mining rigs that many individuals cannot afford.
Moreover, Pi Network envisions its coin being widely adopted for commercial transactions. According to recent statements from the developers, over 27,000 businesses are ready to accept Pi Coin once it officially launches. This focus on commerce sets Pi Network apart from Bitcoin, which has largely become viewed as an investment asset rather than a functional currency. In fact, Bitcoin's aspiration to serve as a superior currency compared to the US dollar has not materialized.
The developers of Pi Network have successfully cultivated a large user base, with over 50 million miners—referred to as "pioneers"—and more than 100 million downloads of its browser. Additional initiatives, such as the Fireside Forum, have gained popularity within the crypto community.
▎Challenges Ahead for Pi Network
Despite its success, pioneers have faced significant hurdles, particularly the inability to convert their Pi coins into fiat currency for several years. The developers have emphasized the importance of preparing the network for this transition and aim to learn from the pitfalls encountered by other tap-to-earn projects like Hamster Kombat and Catizen.
▎The Future of Pi Coin
The developers have announced plans to launch the Open Mainnet in the first quarter of this year, transitioning from an enclosed mainnet to a public one where pioneers can trade their tokens. This mainnet launch will coincide with the completion of Know Your Customer (KYC) verifications by more pioneers, allowing them to transfer their tokens.
The initial grace period for KYC verification ended on November 31st but was extended to December 31st and then further pushed to January 31st. This extension aims to assist at least 2 million pioneers in completing their migration.
The central question remains: Can Pi Network succeed where Bitcoin has struggled? A significant concern is whether many Pi pioneers will choose to sell their coins immediately after the airdrop, a pattern observed with projects like Hamster Kombat and Catizen. If this occurs, Pi Coin risks becoming just another cryptocurrency in an already crowded market.
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