Pi has to be in Crypto Exchanges

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Pi has to be in cryptocurrency exchanges. If not, the Pi Network ecosystem will not be sustainable for the long term.

The vision of Pi Network states, “Build the world’s most inclusive peer-to-peer marketplace, fueled by Pi, the world’s most widely used cryptocurrency.” So the primary goal is for Pi token to be a medium of exchange, just like the original purpose of Bitcoin and other cryptocurrencies out there.  Only that mostly have failed to achieve this goal. Until now this particular use of cryptocurrency still remains to be seen in the mainstream economy.

To put it simply, Pi Network aims to enable ordinary person to earn Pi cryptocurrency by using mobile phones, then be able to build an inclusive peer-to-peer marketplace where Pi will be used to purchase various products and services. Which other crypto project have failed to do. Instead, most just remain being listed and traded in cryptocurrency exchanges.

For this reason, having Pi token as a trading item in cryptocurrency exchanges is not the priority. Based on its original white paper, Pi Network will leave it to the cryptocurrency exchanges if they want to have Pi coin in their platforms. This can happen only in the later stage in the open mainnet.

On this scenario, it may take a little time for Pi to be on major cryptocurrency exchanges. More particularly those that requires significant amount of listing fee. Unless they will waive such requisite for Pi, what we can expect is that the possible exchange listing will happen maybe much later, but not sooner.

Now in the enclosed mainnet stage of the Pi blockchain, what is doable is for Pi to be used as a digital money. It can be already used to purchase products and services in peer-to-peer transactions.

So, if Pi can be used to buy goods and services, why is there still a need for exchanges?

To explain the necessity of having Pi in the cryptocurrency exchanges, allow me to illustrate this in the following scenario.

Assuming Pitaxi platform is up and running, a driver-operator who is a Pioneer accepts Pi token as payment for his taxi fare. So, Pioneers who will be riding his taxi pay Pi to him, then he accumulates more Pi tokens in his wallet.

The moment his vehicle gas runs out, he needs to find a gas station that accepts Pi token as payment for the gasoline to fill his taxi fuel tank. What if there is no gas station that accepts Pi token as payment in his community?

So, he will have to use fiat money to refill his taxi’s fuel tank, while he keeps on accumulating Pi tokens in his wallet. The question here will be, for how long can he refill his fuel tank using fiat money without cashing out his Pi? Does taxi drivers-operators have ample fund or savings to operate in such condition for long period?

Imagine the same scenario among online vendors, where they procure goods for their stores. Or food processing ventures and cottage industries that buy raw materials in fiat money needed to make their products. How long can they operate using fiat money to buy raw materials and pay labor wages? While accepting Pi tokens payment as they sell their products.

Please also take note that other than their business operating requirements, they also need food, tools, equipment, appliances, various services and amenities for their homes and families.  So basically, Pioneers will really have to find a way to convert their Pi into fiat money or other crypto. Unless all Pioneers are living in a community where they can readily buy all the goods and services, they need using Pi in their immediate economic environment, there really is a need for a crypto exchange service.

This explains why Pi has to be in cryptocurrency exchanges, whether inside or outside of the Pi Network ecosystem soon.

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