Since its launch in 2019, the Pi Network has intrigued the attention of millions of crypto users globally. Pi Network quickly grew in popularity due to its accessibility and community-driven approach being marketed as a cryptocurrency that could be mined from any smartphone.
Currently, with over 50 million users who are known as “Pioneers”, the network has a core mission to decentralize the crypto ecosystem. Whereas most cryptocurrencies require an expensive mining rig or a complicated staking mechanism to mine, Pi can be mined straight from the mobile phones of the users.
Although promising, the network did create what can only be deemed as a myth around it; one of the most prevalent ones being their Global Consensus Value (GCV).
What is Pi Network’s GCV?
GCV, or Global Consensus Value, is a concept held by many Pi Network users. It is believed that each Pi coin is worth $314,159. This figure is inspired by the mathematical constant Pi (π), combining it with the community’s optimism about the network’s future.
Advertisement
The idea gained traction among the popular consensus after Nicolas Kokkalis, one of the project’s founders, mentioned in a video that “Pi is worth what Pioneers make it worth.”
In the phase of the network’s development, where there is no official market price, this statement encouraged Pioneers to assign their own value to Pi when bartering goods and services within the network. However, as the network transitions to the open mainnet, the feasibility of this valuation comes into serious question.
The Myth of GCV Valuation
Although a good marketing move that demonstrably helped Pi Network to gain some social media traction, the valuation seems to be fundamentally flawed. The proposed value of $314,159 per Pi coin does not seem to be grounded in economic reality.
For one, the Pi Network is expected to have a circulating supply of 10 to 20 billion coins(according to their whitepaper) when it reaches the open mainnet. To achieve a value of $314,159 per coin, the network’s market cap would need to exceed $6 quadrillion which is an astronomically unrealistic figure that surpasses the entire global economy by orders of magnitude.
There isn’t enough money in the *world* for Pi to reach GCV prices.
Full article: https://t.co/UIVRMOjfD1#PiNetwork pic.twitter.com/tREXIE68bE
— Kris Kozma (@kriskozma) August 26, 2024
Once Pi is launched on an open mainnet and becomes tradable on an exchange, the prices will be determined by the principal of the market books rather than pure speculation. In reality, the price of Pi will likely start much lower, as traders and exchanges set its value based on the available supply and initial demand.
Advertisement
While Pi Network has successfully built a large and enthusiastic community, the realities of the cryptocurrency market make such a valuation impossible. For Pioneers and potential investors, it is crucial to approach Pi with realistic expectations grounded in market realities.
Also Read: Missed $DOGS? Check Out These 3 Telegram Airdrop Projects!
