In this article, I’m going to discuss the potential value of pi networks, pi coin review, and why most of the predictions made so far. At least in my opinion are useless and are harming the future and the potential value of the pi coin value. How much financial gain you can potentially get out of your pi coins. If you have no idea what pi network is and what I’m talking about I recommend that you use This link to create your free account. Get your share of pi coins for free today. If you don’t understand everything the first time, Don’t worry simply read it again.
This is probably the most important article regarding pi you will ever read. If possible go somewhere where you can read it in peace without being interrupted by others. I’m serious about it if you want to get the most out of your pi coins. This is the one article you have to read understand and share with other pi network users. However for legal reasons I also have to mention that everything I share in this article, is my personal opinion and not financial advice. You have to do your research and make your own decisions.
What gives us the dollar its value until 1971 VS Pi coin value
let’s get started to understand how much one pi coin value can be worth. We have to first cover and understand a few basics. let’s start by taking a closer look at our dollar and what gives us the dollar its value until august 1971. US dollar used something called the gold standard. This meant that u.s dollars were not just pieces of paper but certificates backed by gold. If we look at us dollar banknotes from back then you can see that the note states 10 gold coins payable to the bearer.
On-demand or in the case of the 100 bills 100 dollars in gold coin payable to the bearer. On-demand this also meant that the us government couldn’t just print as much money as they wanted. But that they needed to have the equivalent of all the money in circulation in gold somewhere. However, since august 1971 that’s not the case anymore, and the value of the us dollar isn’t tied to anything.
Trading economics
Other than the belief that it has a real value as we can see on this graph from trading economics. That shows the so-called money supply for the last 25 years ending the gold standard more or less allowed by the government. To simply print more money without any limit whenever. They wanted to and just in case you’re wondering the money supply counts. All the us dollar coins paper bills and us dollars in central bank reserves. So pretty much the total amount of us dollars that exists so the money supply is similar to the circulating supply of a cryptocurrency. With the exception that almost all cryptocurrencies have a maximum supply, the us dollar doesn’t.
Fred
If we take a look at another graphic from Fred. That shows the amount of us dollars in circulation in billions of dollars. You can see that it’s also constantly increasing those things are important to understand. The potential value of your pi coins and pretty much every other asset on this planet. Allow us to draw two very important conclusions.
First, the more money is printed the less each bill is worth.
One us dollar will always be one us dollar but with more in circulation. You can’t buy the same things with it. So while it’s not the only factor increasing the money supply. Also increases inflation or in other words, reduces the purchasing power of each dollar and inflation is just another way of saying things. Getting more expensive year over year.
Second, the us dollar is not backed by anything
The second thing we can take away from this is that it’s the most important point because the us dollar is not backed by anything. Other than the belief of most people that it has value we can learn. That the one and the only thing that decides if and how much something is worth is. The collective belief of a reasonable-sized group of people let that sink in for a second. The primary reason why you can use us dollar bills to pay for your car phone or anything else. Because the majority of people on this planet believe that that piece of paper has value. At this point, I want to mention that many of the things are shared. So far is simplified and the whole monetary system is more complicated than that.
Few other things that you have to understand
Anyways now that we got that out of the way there are a few other things that you have to understand. Determine the value of everything you can buy nowadays. One of those things is supply and demand to keep this very simple.
Imagine you are the only person on eBay selling the new iPhone. That is sold out everywhere else and there are a million people that want to buy it. Chances are with very limited supply and such huge demand that someone will be willing to pay an insane amount of money for your iPhone. On the other hand let’s consider two similar scenarios. The first one million people are trying to sell their iPhone on eBay. But there are only 1000 people that want to buy one in this case. The majority of people won’t be able to sell their iPhone at all. The 1000 people that get to sell theirs likely will be the ones that list it for the lowest price.
In the second scenario, one million people own an iPhone. But only 100 people want to sell it and 1 000 people are looking to buy that iPhone. In this case the situation is again similar to the first one. Because the demand is much higher than the supply. Even though there are many more people that own an iPhone simply. Because they are not listing it for sale. The available supply is reduced and the price that is being paid for the relatively small number of iPhones sold. Will again be much higher than what we can Learning from this is that. Even if an asset has an incredibly high supply.
The principle applies to the prices of shares on the stock market
The same principle applies to the prices of shares on the stock market. If more people are trying to sell then there are people willing to buy. People selling have to start to lower the price to find a buyer and in the end, the price of the stock starts dropping. If there are however more people that want to buy a specific stock. Then people are willing to sell the buyers have to start to offer more and more money per share. To get someone to sell a share to them and as a result, the price per share goes up and the same also applies to pretty much everything else.
Determine the potential value of the cryptocurrency
Like for example the price of real estate in a specific area and also the value of cryptocurrencies. Now to determine the potential value of the cryptocurrency. We just have to briefly cover one more aspect before we will be able to combine all of that to determine. The potential value of your pi coins is the last thing that is especially important. When it comes to cryptocurrency is usability . What can you do with that cryptocurrency? or what is it good for a great example?.
For this would be helium or in short h t which can be earned by operating a helium hotspot or running a validator company. People that want to use the helium network and transmit data on the network have to pay for these data transfers in hmt. As a result, they have to buy hint first which creates a demand on the market. Depending on how many hnt holders are willing to sell. Helps increase the value of hnt if nobody would have to. I want to buy and then there would be nobody to sell to and hnt would be worth nothing another.
Such example would be stored a cryptocurrency. People can earn by sharing unused hard disk space. Which is then used to store encrypted files of others. Users that want to store their files have to pay a certain amount either in-store or in feared currency. That then is also used to buy storage on the market and you guessed. It is just like with hnt that is what creates demand for storage on the market. Helps drive up the price over time. On the other hand, we also have cryptocurrencies that serve no real purpose.
Is the specific value well?-Stable coin
The demand is often created by celebrities and influencers. We have to remind ourselves about something that we learned earlier in this article. The value of the us dollar only exists because of enough. People believe that it has a specific value well and the same goes for cryptocurrencies. Like that there’s one last example I want to show you and that is tether USD or in short usdt. A so-called stable coin that has a constant value of more or less exactly one us dollar per usdt. It’s supposedly backed by the us dollars so similar to the gold standard the company behind usdt .Holds one us dollar for every usdt that is in circulation.
At least that’s how it should be. According to an article in the financial times the latest audit of tether at the end of March 2021 shows that only 2.9 percent of the entire usdt supply is backed by u.s dollars in cash. Overall only 75.85 are backed by what tetter calls cash equivalents. Other short-term deposits and commercial papers.
The rest is split up into secured loans although we don’t know how or by whom they are secured corporate bonds funds. Precious metals although we don’t know how secure those bonds are. 1.64 are backed by other investments like investments in other digital tokens. If we consider this one usdt should at most be valued at roughly 75 76 u.s dollar cents assuming. We accept that the cash equivalents and other short-term deposits and commercial papers are secure. Valid to back usdt if we only consider the actual cash as valid security. Then one usdt should only be worth slightly more than 0.02 us dollars.
And that it’s worth one us dollar almost nobody is willing to sell usdt for less than one us dollar. Almost everyone is willing to pay one us dollar per usdt. In fact, during the entire last year usdt never fell below 0.994 and never went higher than 1.03 us dollar. Even though the numbers clearly show that this value is not justified by now. You already know why that is the case exactly because enough people believe that one usdt is worth one us dollarr. Nobody is selling usdt for less while everyone is willing to pay one us dollar per usdt.
How much your pi coins are worth
The way it should be so far so good now that we know all of that we can use that information to determine. How much your pi coins value are worth and understand why everyone that’s running around and claims. Pi will be worth a few cents a few dollars less than a few cents isn’t doing you any favors. And is harming the potential value of your pi coins at the time of recording. This article pi network just launched the enclosed mainnet.
During this phase of the mainnet KYC verified users will be able to transfer their pi coins to other pi network users. Use them in a variety of apps that are already or will be accessible through the pi browser application. Pi will not have a specific value that you can look upon. For example coin market cap or similar websites.Because it gives pi coins value the time to establish a rough value without the negative influence of short-sighted. Users that just want to dump all their pi coins for pennies on the dollar. We also know that there will be a total supply of 100 billion PI coins.
While we don’t yet fully know exactly how much of this supply will be initially in circulation. You might have already seen people claim that simply because of this total supply. Pi coins can be worth more than a few cents and should be worth even less. Because we already know that the supply alone doesn’t mean anything. Everyone tells you how much your pi coins are going to be worth. Just based on the supply has at least in my opinion no idea what they are talking about.
Now the following part I’m going to share with you is quite simplified and ignores the importance of the so-called market capitalization. So how much all the coins in circulation of a specific cryptocurrency are worth total at the current value. It should help to show you again that supply alone is not enough to determine the value that your pie coins can have.
Bitcoin with a total supply of 20 million coins
A circulating supply of close to 19 million coins right now and a value of 46 704. At the time of writing this article if supply alone would be enough to determine the value of the cryptocurrency. Considering that bitcoin is a cryptocurrency then for example Cardano or in short ada with a total supply of 45 billion. Simple math since the circulating supply of Cardano is around 1790 times bigger than the one of bitcoin. However, the actual value of Cardano right now is 1.34. Now obviously bitcoin and Cardano both have different use cases.
That’s exactly my point. Here supply alone does not help in any way to estimate or determine how much your pi coins can be worth. Everyone tells you that based on the supply pi coins can’t be worth more than a few cents. Ignores a lot of important factors and has no idea. What they are talking about this is where it gets interesting because if we sum up what we learned so far. We get the answer you and every other pioneer have been looking for first. While supply and demand influence the price or value of an asset. They are not alone enough to properly estimate the value second while it’s a benefit.
If a cryptocurrency has a use case that alone doesn’t allow us to properly estimate the value of that cryptocurrency. More importantly, even cryptocurrencies without any real purpose can achieve incredible growth and returns. If the community around the project creates a big enough hype. As a result, demand is third while the circulating supply is important. The supplies alone don’t allow any real conclusions about the value of your pi coins.
How much any asset is worth
Last but not least in the end the one thing that matters and determines. How much any asset is worth is the belief of a big enough group of people that. The last point is also why everyone out there telling you that pi will only be worth a few cents or a few dollars is harming. The project in my opinion because if enough people start to believe that a few cents are a fair value pair pi coin value. They will be willing to sell their coins. For that value and that alone is what will make that low price a reality anyway.
Now let’s see what those points that we just mentioned look for.
Pi coins right now we already know that there is demand because of communities. Like the pi lifestyle or in short, that already used pi coins to facilitate transactions. Using a fixed value of 1 pi equals 100 now. If you’re curious how they did that considering that the majority of users can transfer their pi coins. You can check out the article I made about the community in the past by clicking here. So for one pi equals one hundred dollars in a total of two thousand seven hundred ninety-five transactions.
One of those transactions, by the way, was when I paid 0.5 pi to get two mounts for our studio lights here worth around 50 dollars. A couple of months ago with that, we also already cover at least one use case for your pi coins. Because the community already proved that pi coins work as legal tender.
Supply before we reach the mainnet
Last but not least the supply before we reach the mainnet there have been speculations that are based on the long mining period. The total supply will be in the trillions and yet communities like tpl decided to still value pi at 100 per pi. And other similar communities decided to value pi at 10 or 20. In each of these communities people wear and are still okay with that value. However now we know that the supply with 100 billion total pi coins is a lot less.
The initial circulating supply will even be smaller than what most people originally expected and estimated. So if thousands of people valued pi at 10.20 or like in the case of 100 per pi coin value. When they assumed the total supply would be much bigger. I don’t see why suddenly any of those three values shouldn’t be possible anymore now. That pi finally becomes transferable between all verified users. I know some people will now complain that at one hundred dollars per pi coin value. Pi would have a market capitalization of if I did the math correctly 10 trillion us dollars.
That would be much bigger than bitcoin’s current market cap and that’s a valid point. Just like the supply market capitalization alone also only means so much. Because bitcoin’s market capitalization right now is around 900 billion us dollars.
What do you think would happen to bitcoin’s price and as a result their market cap. If everyone would try to sell their bitcoin to get those us dollars instead of holding bitcoin correct bitcoin would end up with a market cap of pretty much zero. Because if everyone wants to sell and nobody wants to buy the price would plummet. In other words market capitalization while an important metric that is more or less just the theoretical value. It’s impossible to cash in the entire market cap because if you would try to do that. If people would try to do that the price would crash as a result and the market cap would go to zero.
Anyways so as we can see pi compared to many other cryptocurrencies out there fulfills all the requirements for a successful. reasonably valued cryptocurrency. You should never forget that most importantly. It already has at least a few thousand users that believe that even a value of one hundred dollars per pi coin is fair and possible. That’s the really important thing at least in my opinion now. While I would love to tell you that based on all of that pi coins will be worth 100 per pi coin value.
The real takeaway here is that you should not ask yourself how much pi coins will be worth. You should not listen to any single person, not even me that tells you pi will be worth exactly that much or pi can’t be worth more than this. Ask yourself how much pi coins should be worth considering the already existing use cases.
The total supply that we now know and all the other factors we covered in this article. Everything else you already know about the pi network now that’s it. I honestly hope that you were able to take something away from this article. That will help you not only determine how much your pi coin value should be worth but also to understand which factors influence it. The value of everything else in your life if I did a good job with this article you realize that the value of most things simply comes from the belief of a big enough group of people.
