Debunking The Top 3 Pi Network Myths
Misinformation and fantasies are running rampant inside the global pioneer community.
Long development time sure gives people chance to come up with wild ideas.
Today, we are debunking the top 3 myths around Pi Network.
Myth #1: Global Consensus Value “1 Pi = $314,159”
The largest and most polarizing myth which spread amongst pioneers is the Global Consensus Value movement. Most commonly referred as
GCV, the idea is simple: 1 Pi = $314,159. Although there is no official price for Pi yet, folks believing in GCV advocate pioneers to buy and sell goods and services using this unified valuation.
This idea sprung up shortly afterwards Nicolas Kokkalis, one of the founders of Pi Network, said in a video that “Pi is worth what pioneers make it worth.” This makes sense in the enclosed mainnet because there is no official market price, therefor pioneers’ only choice is to assign some value to their Pi when trading.
This fantasy falls short as soon as Pi reaches open mainnet and Pi becomes a tradable currency on exchanges. Why? Because billions of Pi as well as millions of both pioneer and non-pioneers alike are going to trade Pi on the global markets simultaneously. With billions of Pi in supply, the chances for Pi to have a price of $314,159 is 0.
Exchanges listing Pi are likely the ones that will decide the starting price of Pi based on the token’s supply, and traders decide which way the chart goes via buying and selling Pi on the exchanges. From that moment on, if you want to know what the price of Pi is, you can easily check any time and you are no longer forced to barter to make up your own estimation whenever trying to trade Pi.
The whitepaper states the circulating supply of Pi Network at the start of open mainnet will be 10-20 billion Pi, so, “if” each Pi was $314159, the market capitalization of Pi Network would be over 6 quadrillion dollars, which equals to 6000 trillion dollars. This is precisely the problem. We have many coins therefor the price of Pi will be lower.
For example for Bitcoin to reach a price of $314,159, it needs to 5X in valuation, but there are only ~20 million Bitcoin in circulation — we will have 1000 times more Pi in circulation because we’ll have 20 billion circulating Pi, resulting a 1000 times longer road to realize the "GCV price”.
We’ll leave you this picture to conclude our case.
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