My thoughts on Pi Network after 3 years and almost 1 million tokens

Summary

In this video, the creator reflects on their 3-year journey with the Pi Network, a cryptocurrency project aimed at making crypto more accessible through smartphone mining. Despite initial enthusiasm, concerns have arisen about the project's liquidity, scalability, and delayed launch. The creator explores whether Pi is a scam, emphasizing its low investment risk but pointing out the challenges in turning the project into a viable currency. They suggest that while Pi's future is uncertain, it has potential if the right solutions are implemented, advising users to mine with minimal commitment and not invest too heavily.

Takeaways

• 😀 Pi Network is a project aiming to create a global cryptocurrency that is easy to mine via a smartphone app.
• 😀 The project was initially appealing due to its development by reputable Stanford-educated academics.
• 😀 Over $800,000 in funding has been invested in Pi Network, though funding alone doesn't guarantee a project's success.
• 😀 Mining Pi is simple and requires no financial investment, only a few seconds of effort each day, making it accessible for many.
• 😀 There is no direct financial risk in mining Pi, as it doesn't require users to spend money upfront or link financial accounts.
• 😀 Concerns about Pi being a scam mainly stem from accusations of data theft and time-wasting, but the project doesn't seem to deceive users.
• 😀 Pi's launch has been delayed multiple times, with the current expected launch date set for June 2024.
• 😀 Liquidity is a major concern for Pi Network, as there are millions of miners but insufficient liquidity to allow users to sell their coins.
• 😀 The Pi Network team may face challenges when launching, as the large number of miners could overwhelm the liquidity pool and lead to chaos.
• 😀 Solutions to Pi's liquidity issue may include increasing investment in the liquidity pool and creating incentives for users to buy rather than sell Pi.
• 😀 The speaker suggests users should mine Pi casually without over-investing time or effort, treating it as a low-commitment activity rather than something to focus on daily.

Q & A

What is the Pi Network project about?

The Pi Network is a project designed to create a global cryptocurrency called Pi and build an ecosystem around it. The primary goal is to make cryptocurrency more accessible, especially to people in countries where it is hard to access.

Why did the speaker initially find the Pi Network interesting?

The speaker found the Pi Network interesting because it was developed by Stanford graduates, had significant funding from respected investors, and offered a simple way to mine cryptocurrency on a phone without the need for large investments.

What is the main argument against the Pi Network from its critics?

Critics argue that Pi Network could be a scam, with concerns about the project stealing user data and wasting people's time. However, the speaker believes these concerns are largely unfounded, as the network does not require monetary investment or sensitive financial information.

Does Pi Network involve financial risk for its users?

No, Pi Network does not require users to spend money, invest, or link financial accounts. It only requires a minimal daily time commitment to mine cryptocurrency, making it a relatively low-risk project.

What are the concerns regarding the Pi Network's liquidity?

A major concern is the liquidity problem. There are 50 million users mining Pi, but only a small portion of them (around 10%) will be able to sell their coins when the network launches. The current liquidity pool is too small to accommodate all users trying to cash out.

Why has the Pi Network launch been delayed?

The launch has been delayed multiple times to avoid issues related to liquidity. The founders are cautious about releasing the network prematurely, as doing so could cause a rush of users trying to cash out, draining the liquidity pool and destabilizing the project.

What potential solutions are suggested for the liquidity problem?

Potential solutions include increasing the liquidity pool by using advertisement revenue generated from the app and attracting institutional investment. Additionally, creating useful applications within the Pi Network could incentivize people to buy Pi instead of sell it, balancing supply and demand.

How does the Pi Network plan to make the cryptocurrency more accessible?

Pi Network aims to increase accessibility by allowing people in underrepresented regions with limited access to cryptocurrency to mine Pi using just a smartphone app. This is particularly important in countries with technological or financial barriers to entry for crypto.

What is the speaker's overall view of the Pi Network after 3 years?

After three years, the speaker no longer actively thinks about the Pi Network, though they still view it as a cool concept. The speaker suggests that users should spend just a few seconds per day mining Pi without getting too invested in it or spending too much time on it.

What is the speaker's advice for Pi Network participants?

The speaker advises participants to treat Pi Network as a low-commitment activity, spending just a few seconds each day to mine Pi without worrying about it too much. The main suggestion is to not let the project take up too much of one's life and to keep it as a casual interest.