CONSENSUS OR MARKET: WHAT WILL DETERMINE THE PRICE OF Pi ?
There are more than 10,000 cryptocurrencies in the world and their initial price, all of them, depend on the market or the forces of supply and demand. But the initial price of Pi doesn't depend on supply and demand. Rather, it depends on the consensus or agreement of the Pi Network community.
Here's the reason: All cryptocurrencies except Pi, the launching of their coins started first before they built their community. In the case of Pi, a large community was first built before the Pi coin is launched.
If you mint billions of coins but you don't have a community to buy or use it, your coins won't have a value. So you need to create a hype through ads to attract people to buy your coins. An important part of your strategy is to offer your coin at a very low price. This is called initial coin offering or ICO.
All cryptocurrencies started with an ICO at almost zero or very low value. And while the demand grows, their prices grow since the suppply of these coins were deliberately made limited. Thus, it is true that for all these crypto currencies, it is the market that dictates the initial price.
But when it comes to Pi, the case is different because of the size and demography of its pre-built community. There are more than 35 million Pi Network members right now and it is expected to double soon. All kinds of people are already in this community such as manufacturers, suppliers, sellers, resellers, logistic owners, service providers, professionals, skilled freelancers, and buyers or consumers.
All of them see the Pi coin as source of wealth. All of them wants to use Pi coins to buy the things they dream of having. They are very much willing to offer their services and products with each other in exchange of Pi coins. As a matter of fact, there are already big companies advertising their products and will accept Pi as payments.
A seller, who wants his Pi coins to increase because he knows that its value will soon increase, is excited to accept Pi coins as payment for his products or services. Of course, he also wants a bigger starting value for the Pi coin since he is also a buyer or consumer.
A buyer also wants a bigger starting price for Pi so that he can buy the things he wants and so that he can also put up a business and wont be emptied with Pi. This means that, in principle, all people in the Pi Network are both seller/service providers and consumers. All of them have a huge interest on Pi. They all want to transact already with each other using Pi.
Therefore, the only remaining thing they need to do is agree on the starting price of Pi. They can either choose $100, $314, or $1000,314,159$ Nothing can prevent them if they reach consensus. Hence, Pi doesn't need to have an ICO.
But one has to consider as well the ideal initial price of Pi. Because if it's too low, it won't kick-start the economy of its global ecosystem and the project will fail. If too high, it will become a barrier of entry to new comers. In my opinion, the ideal price of Pi at launching is $100 – $300. Here, the market is still a factor for the ideal initial price, but it is secondary.
At the very moment Pi starts to be traded or used in transactions, the forces of supply and demand takes effect. The open market will now influence its succeeding price movements. But it is guaranteed to increase because of its network effects. At launching, Pi Network will create a big impact if its starting price is high because outsiders will finally see the wealth that the Pi Network members will enjoy because of the Pi coins they patiently mined.
#PiCommunity #PiNetwork #PiConsensus #web3 #PiPayment #PiBlockchain #cryptocurrency #pibrowser #pi #NFT CONSENSUS OR MARKET: WHAT WILL DETERMINE THE PRICE OF Pi ?
😎There are more than 10,000 cryptocurrencies in the world and their initial price, all of them, depend on the market or the forces of supply and demand. But the initial price of Pi doesn't depend on supply and demand. Rather, it depends on the consensus or agreement of the Pi Network community.
Here's the reason: All cryptocurrencies except Pi, the launching of their coins started first before they built their community. In the case of Pi, a large community was first built before the Pi coin is launched.
If you mint billions of coins but you don't have a community to buy or use it, your coins won't have a value. So you need to create a hype through ads to attract people to buy your coins. An important part of your strategy is to offer your coin at a very low price. This is called initial coin offering or ICO.
All cryptocurrencies started with an ICO at almost zero or very low value. And while the demand grows, their prices grow since the suppply of these coins were deliberately made limited. Thus, it is true that for all these crypto currencies, it is the market that dictates the initial price.
But when it comes to Pi, the case is different because of the size and demography of its pre-built community. There are more than 35 million Pi Network members right now and it is expected to double soon. All kinds of people are already in this community such as manufacturers, suppliers, sellers, resellers, logistic owners, service providers, professionals, skilled freelancers, and buyers or consumers.
All of them see the Pi coin as source of wealth. All of them wants to use Pi coins to buy the things they dream of having. They are very much willing to offer their services and products with each other in exchange of Pi coins. As a matter of fact, there are already big companies advertising their products and will accept Pi as payments.
A seller, who wants his Pi coins to increase because he knows that its value will soon increase, is excited to accept Pi coins as payment for his products or services. Of course, he also wants a bigger starting value for the Pi coin since he is also a buyer or consumer.
A buyer also wants a bigger starting price for Pi so that he can buy the things he wants and so that he can also put up a business and wont be emptied with Pi. This means that, in principle, all people in the Pi Network are both seller/service providers and consumers. All of them have a huge interest on Pi. They all want to transact already with each other using Pi.
Therefore, the only remaining thing they need to do is agree on the starting price of Pi. They can either choose $100, $314, or $1000,314,159$ Nothing can prevent them if they reach consensus. Hence, Pi doesn't need to have an ICO.
But one has to consider as well the ideal initial price of Pi. Because if it's too low, it won't kick-start the economy of its global ecosystem and the project will fail. If too high, it will become a barrier of entry to new comers. In my opinion, the ideal price of Pi at launching is $100 – $300. Here, the market is still a factor for the ideal initial price, but it is secondary.
At the very moment Pi starts to be traded or used in transactions, the forces of supply and demand takes effect. The open market will now influence its succeeding price movements. But it is guaranteed to increase because of its network effects. At launching, Pi Network will create a big impact if its starting price is high because outsiders will finally see the wealth that the Pi Network members will enjoy because of the Pi coins they patiently mined.
#PiCommunity #PiNetwork #PiConsensus #web3 #PiPayment #PiBlockchain #cryptocurrency #pibrowser #pi #NFT
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