September 22, 2021
In the Pi chat rooms, the following questions are raised by Pioneers a hundred times everyday:
How can I withdraw my money?
When will be the pay-out?
When will Pi be listed in CRYPTO EXCHANGES?
How much is the value of Pi?
And a lot more related to the questions above. These questions are just reflections of the general sentiment of the millions of Pioneers. That is to withdraw their Pi coins, spend them to buy goods, or convert them to fiat money as soon as they possibly can.
After all, it is their money, when the right time comes. So they must enjoy it like any money they earned for themselves. Anyway it is not other people’s business what we do with our own money, right?
Pi Network Vision and Mission Statement
The White Paper states:
Mission: “Build a cryptocurrency and smart contracts platform secured and operated by everyday people.”
Vision: “Build the world’s most inclusive peer-to-peer marketplace, fueled by Pi, the world’s most widely used cryptocurrency.”
To summarize, the goal of the Pi Network is to enable the ordinary person to earn Pi cryptocurrency in the simplest manner using our mobile phone, and to be able to build a comprehensive peer-to-peer marketplace where Pi will be used to purchase products and services.
As it is, having Pi coins as an item in cryptocurrency exchanges is not the main purpose of Pi Network. Practically, Pi Network will leave it to the cryptocurrency exchanges if they will want to have Pi coins on their platforms.
In this scenario, Pi may take a little time to be on major cryptocurrency exchanges. More particularly those that require a significant amount of listing fee. Or this could be sooner for minor platforms that do not require any fee.
What is immediately doable after the mainnet launching will be for Pi to be used as digital money that can be used to purchase goods and services, in physical and online stores, as well as in peer-to-peer marketplaces.
Cryptocurrency Market Environment and Pi Value
The cryptocurrency market generally is said to be highly volatile being played by whales, institutional investors, and retail traders along with the vast majority of ordinary digital currency players, with its unpredictable upswings and downward spirals of prices, during bullish and bearish cycles. This is because most are considered investment products and digital assets by day traders and long-term investors. Although few stablecoins are in parity with the US dollar which most of the time is relatively less affected by the overall market sentiment.
Knowing that Pi is not designed to be a pump-and-dump cryptocurrency, some Pioneers are saying that the price or value of Pi will not be dependent on the price set in the cryptocurrency exchanges. That Pi will have its own intrinsic value that will basically be built on its own Pi Network eco-system. Practically driven by the demand resulting from its practical, real-life use cases in various fields and socio-economic sectors.
While this is true, considering human nature as well as consumption and expenditures patterns, I have doubts if the market value of Pi will totally be independent and confined to its own network ecosystem. That it will not be influenced by the traditional cryptocurrency market environment. This is because Pi being digital money itself is a part of the bigger cryptocurrency market and economic system. Being as it is, a basic entity or element in the continually expanding crypto verse.
Also, what we have to consider is that during the early period during phase 3, not all the goods and services needed by the Pioneers’ households or their businesses, will readily be available, and therefore can not be purchased with Pi coin in marketplaces within the Pi Network ecosystem. Hence, for Pi users to fully enjoy the benefit of the Pi coins they are holding, there’s a need still for them to have their coins traded in the cryptocurrency exchange market, eventually converting them to fiat. Until such time that there will be a massive adoption of Pi cryptocurrency in the traditional economic system hopefully in the immediate future.
For these and some other reasons, I believe that it is not realistic to set what some Pioneers call a consensus value of US$100 for each Pi coin right during or immediately after the mainnet launching. Though I may say however that this is not impossible. Honestly, I will be very much happy if Pi will reach that price level within the first month of its formal launching.
But much as we want that Pi coin value or price will be high once it is launched and ultimately listed in crypto exchanges, everything actually depends on how the market reacts. The market is composed of buyers and sellers, producers and consumers, as basic drivers of the economic system.
So, if Pi users want to use their Pi coin is a much higher equivalent value to purchase goods or services, then Pi will have a higher value. Each of us Pioneers can practically influence Pi’s market value. So that in the event that even only one user is willing to use or sell his/her Pi for just $1, the Pi coin will be worth $1 at that very moment. And likewise, when business owners will readily accept Pi as payment at an equivalent value of $100.00 for each coin in exchange for the products or services they are selling, then the Pi coin will be valued at such level in that particular instance.
Considering that every Pioneer has some unique economic and financial circumstances, we can not say for now how much really will be the market value of Pi comes mainnet. I am not saying that those Pioneers in the marginalized sectors may be willing to cash out their Pi even just for an equivalent value of 1 dollar or even less.
As there might be Pi users in the higher income bracket that may also decide to unload a portion of their Pi holdings at a lower price while saving the rest for future higher yield. Especially if they have tens of thousands in their wallet once the Pi blockchain mainnet is live. Just so that they will be able to prove to themselves that the digital money they have been long waiting to gain value eventually comes to reality.
If ever all Pioneers (which I personally think quite impossible), have the compelling reasons to strongly adhere and settle to the consensus value earlier cited, the massive network effect of 24 million plus Pi coin holders during the mainnet launch will fall into place. Then most likely everybody will be happy.
Hence, it is very important that each Pioneer has to decide for themselves how much is the value of the Pi coins they are holding. This has to be an individual Pioneer’s notion of valuation, depending on their personal desire on how they perceive Pi will have a substantial effect on their finances and economic condition.
At What Value and How Will You Spend Your Pi?
Now let’s get back to the question. At what value, and how will you spend your Pi coins?
If we want that Pi will have a lasting impact and transformative effect on our economic life, we must carefully think first and consider what we want to get the most out of being a part of the Pi Network. If we believe and have faith in the Pi Network eco-system that it will ultimately achieve what it has envisioned to accomplish, let us wait for the right time when we will use our Pi. At the right value, we desire, for the right purpose and reason.
This depends on our personal motivations and our individual physical, financial, and economic life.
Maybe for the ambitious, gainfully employed young professionals having still a wide investment horizon, they will be willing to wait for quite some time for a much higher Pi value possible. Heavily bunking on the growth potential of Pi Network eco-system, and the massive future demand of Pi coin.
But for the ordinary man-on-the-street living on a day-to-day income existence, and maybe for seniors with shorter timelines, they may opt to spend their crypto assets immediately. As soon as it has gained substantial value in their discernment and is readily tradeable. Possibly when it hits the crypto exchange market.
For those few who are financially privileged with some significant volume of Pi coin earnings, the coming windfall of Pi digital assets could mean more luxuries in life – a new car, pieces of jewelry, or a trip to a prime tourist destination when pandemic travel restraint is lifted. These are decisions and things that can wait until the target price or value will adequately meet their requirement.
And then maybe they can keep enough quantity secured as an endowment for their succeeding generation. For those altruistically inclined, this can offer more opportunities for them to help those who have less in life in their respective communities.
Quite a number may spend their proceeds to invest in real properties, business ventures, and various productive undertakings. Others will just merely use their coins for their day-to-day subsistence.
As I have said earlier, each one of us has our own unique financial needs. Whatever way we will use our earned Pi coins, in what value and when will reflect who we are, as ordinary human beings. Whether it will have a lasting effect and impact on our lives, and in our respective households, will depend on how we value it.
Along with the manner how we will enjoy its benefits, being a member of the Pi Network community.