While Pi Network has managed to build a large community of more than 33 million users, it has also gone years without launching a blockchain or its cryptocurrency, meaning PI coins have no value. Here's a full guide to how Pi works and if it's worth checking out.
What makes Pi unique?
Pi Network is like a combination of a digital currency, an app, and a multi-level marketing (MLM) scheme.
The hook for Pi is that you can mine it on your phone. Other cryptocurrencies that use mining, most notably Bitcoin (BTC +2.15%), require much more processing power, so most miners use specialized devices.
Pi is mined in the Pi Network app, and the mining process only requires that you tap a button on your phone every 24 hours. It's technically not crypto mining since there's no mining going on. You're not verifying transactions, at least at the current stage of development. In reality, you're receiving PI coin vouchers for using the app once per day and proving you're not a robot.
To sign up in the app, you need an invitation code from a member. Pi Network uses a referral system where you earn more coins based on the number of people who register with your invitation code.
Your Pi is stored in the app. You can't withdraw it, sell it, or exchange it for other cryptocurrencies. According to the Pi Network website, you'll be able to do all that in the third phase of its roadmap when the mainnet launches, although there's no estimated launch date.
Blockchain Ecosystem
The winning business app of the first Pi Hackathon was Pi Workforce Pool, an employment marketplace with Pioneers. The winning ecosystem app was PiCare, a bug-reporting system for Pi apps.
Unique risks
There isn't any financial risk with Pi because the app is free to use. The only thing you're spending is your time when you check in to keep mining.
The question is whether Pi is worth your time. Some users see it as a no-lose situation. If Pi never amounts to anything, they're not out any money. If it does, they can sell the PI coins that took very little time and energy to obtain.
That's one way to look at it, but don't hold your breath on Pi being worth anything in the future. The project has been around for years without launching, and its cryptocurrency has zero value. There has even been speculation that it could be a social experiment to see how long people will continue mining a cryptocurrency they can't withdraw or use.
It's worth noting that the Pi Network app can collect and sell your data, including personal data, app usage data, and advertising-related data. Additionally, the Pi Network requires that you give them your "Know Your Customer" (KYC) information such as copies of your government-issued identification before you will be able to buy, sell, or trade anything from the future apps that will be released on the Pi Network. If you prefer to limit who can access your data, then you probably wouldn't want to download Pi Network.
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How to get Pi
Pi can't be bought or sold and isn't available on any crypto exchanges. The only way to acquire it is through the Pi Network app. Here's how:
- Download Pi Network on your smartphone.
- Set up an account with a username, password, and either an email address or phone number.
- Enter an invitation code. If you don't have one, you can find plenty online.
- Tap the lightning button to start mining.
- Check the app every 24 hours and tap the lightning button to keep mining.
If you want to start saving up Pi, it's a simple process. Will this cryptocurrency ever have any value? Time will tell, but the Pi Network is extremely unconventional and controversial, and it offers little use so far, so look for other options if you plan to make crypto part of your investment portfolio. You could try cryptocurrency stocks or investing in cryptocurrencies that are available to buy and sell such as Bitcoin and Ethereum (ETH +3.31%).
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