Is the Pi Network a Scam?
Some information on the new digital currency and its legitimacy
There is no denying the popularity of Bitcoin and other cryptocurrencies within the last 5 years. With immense growth, there was also an increase in miners. Despite the low barriers to entry to be a miner at the onset of cryptocurrency, the market is now more competitive than ever. Currently, becoming a miner is no longer accessible to everyone due to the cost of specialist hardware and the difficulty to access it.
This is what the Pi Network claims it is trying to combat by making cryptocurrencies and mining accessible to everyone via their phone.
What is the Pi Network?
The Pi Network is a prototype blockchain and cryptocurrency. The company claims that it is the first and currently the only digital currency that you can mine on your phone.
The Pi Network does not rely on the power of the phone but rather users earn tokens through referrals and their involvement on the platform.
Currently, the Pi Network’s currency known as Pi Token has no market value and it is unclear when or even if it will acquire value in the future.
How does it work?
Users can download the app on their phone and choose one of the four main options or ways to contribute to the network to earn Pi. There are 4 mains ways are:
Users can contribute simply by logging into the app and pressing the “lightning button” to mine. Users can even click the button and leave the app and they will continue to mine Pi.
Users can increase their return by inviting trusted friends and family to join the community.
There is a “Contributor Role”, which the company says, “allows you to earn more Pi by building a security circle of 3-5 trusted members”
There is also the “Ambassador Role” which allows users to, “earn up to a 25% bonus on your base mining rate for each person you invite to the network.”
Is the Pi Network a Scam?
In the early stages of any new cryptocurrency, it is extremely difficult to gauge its legitimacy. Especially when they are built on similar models of pyramid schemes and multi-level marketing, that require recruitment and promises of future success.
It is important for anyone thinking about investing their time or money into cryptocurrencies to never invest anything more than they are sure they can afford or are willing to lose. It is equally pertinent that people interested in investing in cryptocurrency recall that digital cryptocurrencies cannot be converted into cash.
Further to that, new cryptocurrencies are a more volatile and riskier venture than established cryptocurrencies like Bitcoin.
The Pi Network, specifically, is still in the very early stages, they are currently in their ”Phase Two” stage. As they continue to build their community they will eventually move to Phase Three, which is meant to be the stage when users can withdraw Pi or exchange Pi for other currencies. There have been some critiques of this. AI Multiple, said in their analysis of the Pi Network that, “They have published a high-level whitepaper outlining their ambitions without providing technical details on how their Pi Stack would work.” when discussing its future value.
They have seen quite a significant rise in popularity, with over 10,000,000 downloads. However, the Pi Network’s real value or even potential value is still yet to be determined.
Time will tell.
Tell us in the comments below! Do you think the Pi Network is worth trying?
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