“Money is only as valuable as what it can buy. The more Pi can buy, the more powerful it becomes. Allowing Pi to have more value”
The idea of Pi and the Value it will have are literally mind-blowing. Initially, those who understand basic economics rely on the principle that it falls on two factors: Supply and Demand.
However, that applies more so to commodities. Not so much to a currency. Especially, a cryptocurrency that would be used worldwide daily.
In order for more people to spend Pi, more people must first have Pi.
The developers understood this was a pitfall for many other cryptocurrencies. As it was not easily accessible to a majority of the people out there. Bitcoin required high-end computers/setups such as ASICs (Application Specific Integrated Circuits) as of today to mine this type of cryptocoin. It requires a lot of energy, and a monetary investment that would cost one a few hundreds up to a few thousands of dollars in order to acquire even one machine that would be built to mine Bitcoin.
Pi can be earned through mobile devices and by anyone that has one anywhere in the world. Even very young children understand how to download apps on mobile devices. More so, this is the generation that will follow us. And that will lead us into the future.
“The internet may have been an invention many grew up with. The concept of blockchain technology and cryptocurrencies is what the youngest generation will be accustomed to. They require and expect efficiency, instant gratification, and highly customized products/services. They are constantly seeking better alternatives.”
Fiat currency, one’s own national currency, is backed not by gold which is a physical commodity. It has no intrinsic value. Supply and Demand as well as the stability of the government issuing the legal tender notes determine the value of that fiat currency.
Pi is backed by the people that utilize it. The more variety of goods and services it can buy for people that use it will directly increase its value. The more people that demand it, so that they can use it, will also increase its value. Because more and more people use it as more awareness of it spreads. It becomes exchanged between those that use it more often. This will also increase its value. When Pi is being used for goods and services that people require daily, its value will increase. As others see that Pi is useful, they will naturally gravitate towards it.
Nobody likes to be left out. This is where it starts becoming a topic of social acceptance. When more and more people use it, due to the value it’s bringing to them in their every day lives, if you are the only one not using it, it may exclude you from an entire community of people you could potentially connect with.
Utility -> Demand -> Value -> Increase In Users – > Value – > Prices Determined By Average User’s Pi Holdings ->
The majority of users will be coming in later on the Timeline of Pi which means One Pi will hold a lot of value. Because the majority of people will barely have a few hundred total Pi in their Pi account. This is due to the halving that occurs as the user base within The Pi Network crosses specific thresholds.
This concept is one many are not used to. Bitcoin has a halving based on time roughly because it happens every time a new set of 210,000 blocks on the blockchain are added. The reward if the source code is found for Bitcoin gets cut in half. Which increases the value of all Bitcoins in the world due to scarcity.
Pi does not use the above mentioned approach. Halving happens exponentially, with an exponent of 10 each time, starting from 1,000 Engaged Pi users. Thus, from 1,000 Engaged Pi users to 10,000 Engaged Pi users. 10,000 Engaged Pi users to 100,000 Engaged Pi users. 100,000 Engaged Pi users to 1 million Engaged Pi users; 1 million Engaged Pi users to 10 million Engaged Pi users. 10 million Engaged Pi users to 100 million Engaged Pi users.
The supply limit of Pi will be cut off completely at a specific threshold. It could be 1 million, 10 million or 100 million Pi Engaged Users. The determination of the ultimate threshold will be decided upon by the developers. However, it will happen eventually. When it does, the value of a single Pi will increase exponentially, IF every other factor is already in place.
The Pi Marketplace will have hundreds of thousands of Pi E-commerce online shops offering goods and services within the said marketplace. With millions of Pi users using Pi to enhance their lives daily by treating it as a second income to purchase the very things they would with their fiat currency. Except with Pi, it allows them to purchase even more things through the vendors that accept it as a form of payment.
If exchanges already have Pi listed before the supply of Pi is cut off, this will also increase the value of Pi. As those purchasing Pi on the exchange already understand, the only Pi that will circulate around the world will be the Pi that has been mined up until the point the Pi distribution phase was cut off. It will happen before Bitcoin reaches the year 2140 when it reaches the max amount of it that can ever be mined which is around 21 million Bitcoins.
Due to Pi not being stored on hard-drives like Bitcoin was back in the day, it would mean it would be difficult to lose one’s access to one’s Pi holding. This would mean the amount of people utilizing Pi would keep increasing over time. As more and more people see the lives of those around them change due to Pi, more will join the platform. When it comes to Pi, the fundamental principle of its value is quite the opposite to scarcity. The more Pi that exist in the world will indirectly create more people that use Pi.
“There is no monetary investment at this point preventing someone from being a part of Pi’s vision. The only thing preventing any potential user from joining is their doubt at this point in time.”
Eliminate that, and there is no limit in regard to how far Pi can go around the world.