Is Pi Network Legit Or A Scam? All you need to know about Pi Network

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Blockchaingalaxy

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What is PI Network?

The centralization of first-generation currencies like bitcoin (BTC) has put them out of the reach of many common users. Pi Network is an initiative of digital currency that attempts to keep cryptocurrency mining accessible. By verifying transactions on a distributed ledger, the Pi Network, created by a team of Stanford University alumni, enables users to mine Pi cryptocurrency currencies via desktop and mobile apps. In this script, we will discuss the credibility of the Pi Network.​

How does Pi Network work?

Pi nodes employ an algorithm based on the Stellar Consensus Protocol (SCP) instead of nodes on networks like Bitcoin that use proof-of-work (PoW) protocols. A distributed ledger's Pi Nodes verify transactions and agree on the sequence to record new transactions. As part of SCP, PI nodes create security circles or groups, comprising three to five reliable individuals known to each network user. By requiring approval from the trustworthy nodes before a transaction can be confirmed on the shared ledger, security circles create a worldwide trust network that guards against fraudulent transactions.

Pi Network, like most cryptocurrencies, was developed to decentralize money and make financial tools accessible to a larger user base. Pi stands apart since it was created to be mined on mobile devices. Some claim that the currency has no worth and cannot be exchanged. They claim that because there isn't currently a Pi wallet, it can't even be withdrawn from the app.​

What is the value of a Pi Coin?

It is essential to remember that the mainnet still does not support the Pi network. This indicates that the price of the Pi coin is now less than $1. This, however, is not anticipated to last for very long. The development team predicts that the smartphone mineable currency will become widely available this year. This remains to be seen.​

Is Pi Network genuine or a fraud?

It's challenging to determine whether a new cryptocurrency or digital coin initiative is authentic or a hoax. Although big promises have been made, there is no assurance that this network will survive. Some claim that the currency has no worth and cannot be exchanged. They claim that because there isn't currently a Pi wallet, it can't even be withdrawn from the app.

Some of the reasons why Pi Network is considered a scam include the following;
  • The app's users receive no benefits beyond basic features like in-app texting. Most users keep it in the hopes that they will eventually exchange their virtual currency for real money.​
  • The app only adds little value. Users only provide value when they give their information to the mobile app, watch adverts, or communicate with other users. It is doubtful that the value of these activities will provide much income for the sizable user base.​
  • The software is already benefiting the founders. To monetize the user base of active users, they offered optional video advertising at launch. Additionally, the app features a KYC procedure for gathering passport data. Advertising income would grow if an audience could be confirmed through a KYC procedure. A conflict of interest may arise when companies anticipating offering new functionality (such as launching coins on exchanges) begin monetizing their users.​
  • Their advertising places a strong emphasis on the users' intellectual backgrounds. Similarly, OneCoin, a blockchain fraud without a blockchain infrastructure, based its marketing on the experience of its creator at McKinsey.​
  • There is no evidence of work being done; Users only need to check in to an app daily and press a button to obtain virtual money.​
  • According to the team, more users are crucial to raising the asset's worth. Pi Network has 29 million users from 250 countries and territories as of this writing, as was revealed in November. But these figures haven't yet had any effect on the price of Pi.​
  • The firm made false claims regarding mining cryptocurrency tokens. This is because the company's servers host all transactions. As a result, it cannot be considered a decentralized cryptocurrency.​
  • Another issue many people have with how the Pi Network operates is that it persuades users to provide sensitive personal information without offering them the chance to get anything in return.​

Since the future of this cryptocurrency is not yet known, there is still a possibility that this can be a legit network under development. Some of the reasons why Pi Network can be considered a legit business include the following;​
  • Fraud is defined in law as the willful use of deceit to obtain an unfair or illegal benefit or to deny a victim a legitimate right. It's not a fraud because people don't lose money.​
  • All other cryptocurrencies started from a humble beginning, and were it not for people trusting that they would grow, they would not have invested in them.​
  • Despite having a minimal barrier to entry, the Pi network offers all the advantages of a blockchain-based project. This includes avoiding censorship, permissionless business dealings between two parties, pseudonymity, and a fair playing field for everybody in terms of finances.​
  • While it is not yet considered a decentralized cryptocurrency, it does have some similarities with other projects in this category.​
Cryptocurrencies can be risky investments, and there is always a possibility that you could lose all of your money. Therefore, it is good to be ready for such a scenario.

Conclusion

Overall, the Pi Network appears to be a scam business that could potentially lead to people losing money. Generally, it is just too early to say if the coins obtained will be valuable or not. However, the network's potential may be worth investigating further due to its innovative features and lack of centralized control.

Therefore, before investing in this cryptocurrency, users should research to ensure they are making an informed decision. Furthermore, if you decide to invest in Pi Network, be sure only to do so if you are comfortable with the risk. However, if you decide to invest in Pi Network, be sure to do so with caution and use a reputable financial advisor to help you make the best decision for your individual needs.​
 

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