Currently, with more than 7 million Pioneer, are you wondering what could be the potential value of Pi? Are you a small or a huge reward thinker?
Uniqueness of Pi network.
If you been following my blog, you probably knew now how this new crypto is somehow correlated to bitcoin in my previous post. As a cryptocurrency enthusiast I can already see its uniqueness and great potential, considering the Pi core team's plan and its market community in becoming a digital money for everyday people. They had successfully distributed the token to the general public thru its free mining app, they have plan that would create intrinsic value for the token as well as to prevent people from dumping it by rewarding pi holder thru advertisement in the future and they are helping to build a Pi community market so that the Pi token owner can spend them.
If you look on bigger picture, Pi network has already set up an economy for pi token to circulate and prevent its dumping. Note that i haven't included the fact how serious they are in accomplishing this task and their future plan. ask yourself, have you seen or have you got a crypto successfully built a strong ground for it to become a payment for everyday people? there are a lot of dreamers out there in cryptospace but nothing had been close or better than pi considering its current position.
Pi network's Advantage.
Given the current plan and its environment, what most Pi user don't realize is that they have the power now to control its price if they help and patronize its market community and move as one in the future.
Most user correlate its price to other cryptocurrency, that it will have a low fiat value and it will probably fail because it has a large supply due to free mining. What they fail to consider is that, most crypto now in the market has low value because its community dump it.
Why would they not? you cant use most crypto in the market for daily life! Ask yourselves, why would you hold a token knowing that you cant spend it or even use it? most crypto holder kept it because of its potential value in the future, so whenever they have the chance to sell it when its high and buy when its low they just do it because that is the reason why they're keeping it, to get some profit! As I mention in my first post, most crypto right now became another type of investment, for me the major reason for its volatility is because crypto holder are just keeping it for future profit and not because they can use it on daily basis! So they sell it for fiat whenever it suits them.
Now lets consider Pi's plan and environment then compare it again. Unlike the other cryptocurrency circulating now in the market, Pi holder can use Pi. you can buy goods and services with Pi. That is the reason, why Pi developer allowed an In App Transfer (IAT) to older pioneer, for them to create a community that would buy and sell using pi as means of payment. the only problem now that hinder its success is not all user are KYC'd and can't transfer their Pi.
(It is true that most user cant still transfer Pi but the older pioneer whom had been chosen in the IAT has develop a process for it to become possible.)
Pi network has a plan to prevent the dumping, in its white paper one of its utility is to monetize the attention of user from the revenue of advertisement. Ask yourself, why would you dump your token knowing that you will get a share of revenue while holding it? sure some will be tempted to sell a few for quick bucks but what if the developer will give the percentage of the ad revenue to Pi holder depending on Pi token a person holds? most user will surely buy a couple more pi token when it is down knowing that they will get more share of the advertisement revenue.
Now given that few facts lets compare again, holder can spend pi, which will help in its circulation and Pi has utility which will prevent it from being dump. While the other crypto? you can't use it for payment and the only way you can earn profit from it is by selling it when there is a bull market or there is a demand for it.
Pi's community as the dictator of its price.
Considering the facts above, Pi community can potentially control its token price in fiat. why? because you can spend your token, if you have a lot of token you can use it to buy goods and services. you don't want to spend it? you will also benefit because you will receive a share of advertisement revenue. the advertisement revenue will also create a demand for the token knowing that people can earn while having it. I don't know the Pi network's future plan but if a company will be allowed to create a store on the app but first have to purchase token, lets say for payment of store rent in the app it will also create an organic demand.
Community can potentially control its price by,
*Selling goods and services for less pi (some pi vendor sold goods worth almost $50 for less than 1 Pi)
*allow only the payment of pi for certain goods( knowing that they can benefit when accumulating pi by its ad revenue)
*and sell pi for more fiat. I mean why not? given that you can buy stuff for less pi why sell it for less fiat?
When the demand and value is establish, only the sky is the limit for its fiat value, don't worry about the Pi's total supply because the developer has not disclosed it because they have a different approach on distributing and releasing it for a specific purpose of creating a sense of scarcity.
Pi token's value
Given the factors that I stated above, Pi value would depend on how the community create the token's valuation, if the majority of the pioneer who engage in IAT perceived as if 1 token is equal to cents it will be, if they value the token like its more than 5 dollars it will be. Because what they are doing now (selling goods in change for pi) will affect the valuation.
The good thing is, as I stated above, a vendor sold an almost $50 dollars of goods for less than 1 pi which means if it would be accepted by the community and encourage that kind of valuation 1 pi could be valued to $100 dollars. Since the community hold Pi token's total supply, as stated in its white paper,
"Pi creates a fixed supply of Pi for each person that joins the network up to the first 100 Million participants. In other words, for each person that joins the Pi Network, a fixed amount of Pi is pre-minted. This supply is then released over the lifetime of that member based on their level of engagement and contribution to network security. The supply is released using an exponentially decreasing function similar to Bitcoin’s over the member’s lifetime."
outsider would need to buy that token for same amount. If the outsider find it too high, then the pioneer can just spend it in pi community market because, why would you sell a token to outsider people when you can spend it in the community with more purchasing power? Here is another multiplier, the token holds intrinsic value since someone could earn money from the advertisement's revenue making the token attractive for potential investor, which means it will have a demand that will back up its price and if the community refuse to sell the token to outsider for a lesser fiat equivalent, the price would surely increase.
So again, given that situation, Pi token will surely cost a couple of dollars since the community value the token with high purchasing power!
Summary: Pi token's value will depend on how the community perceived its valuation since they hold the total supply, if they continue to value it with high purchasing power as example stated above $100 =1 pi it will be. The token has also an intrinsic value due to Pi network's plan of monetizing everyone's attention like advertising revenue and future plan that will back up its token price.
If you haven't started mining free pi token in your phone feel free to visit my previous post to understand it and get started
**Disclaimer: this is a personal blog, and what is written here is mixed of facts and my opinion that came from my understanding of Pi network, since the valuation is still not establish, therefore this is prediction of what i think of what will be its fiat value. For me it is much closer given the fact that i consider its important factors like plan, community and white paper.
