What are Pi Network? a new crypto currency launch in 20 Feb 2025

Published on 20 Feb 2025

Image: A conceptual take on mobile cryptocurrency mining, central to Pi Network’s appeal.

What is Pi Network?

Pi Network is a cryptocurrency project launched in 2019 by Stanford graduates, aiming to make digital currency accessible to everyone. Unlike Bitcoin, which requires energy-intensive mining rigs, Pi allows users to “mine” coins via a smartphone app by simply tapping a button daily. Built on a modified version of the Stellar Consensus Protocol, Pi Network reached its open mainnet on February 20, 2025, and boasts over 60 million users. But is it a revolutionary alternative to Bitcoin and Ethereum, or a risky venture with unfulfilled promises? Let’s weigh the pros, cons, and risks.

Pros of Pi Network

Accessibility for All: Pi’s mobile mining requires no costly hardware or technical know-how, opening crypto to millions in regions with limited resources. Over 60 million users have joined, dwarfing early Bitcoin adoption.
Eco-Friendly Design: Unlike Bitcoin’s proof-of-work, which consumes massive energy (e.g., Bitcoin’s annual usage rivals some countries), Pi’s lightweight consensus mechanism uses minimal power, aligning with sustainability trends.
Community-Driven Growth: With a referral system and a thriving user base, Pi’s community could drive adoption and utility, much like Ethereum’s developer ecosystem. Imagine a billion users by 2030—could it rival BTC or ETH in reach?
Potential to Replace BTC/ETH?: While a long shot, Pi’s low fees and fast transfers (thanks to Stellar’s tech) could make it a contender for everyday transactions, something Bitcoin struggles with (high fees, slow confirmations) and Ethereum mitigates only partially (via layer-2 solutions). If Pi builds a robust decentralized app (dApp) ecosystem—currently at 27 dApps, aiming for 100—it might carve a niche.
Free Entry, High Upside: Mining is free, so early adopters risk only time. If Pi gains value post-mainnet (speculated at $0.80-$1 by some analysts for 2025), the payoff could be significant.

Image: Blockchain innovation underpins Pi Network, but can it scale to rival giants?

Cons of Pi Network

Unproven Value: Despite the mainnet launch, Pi coins aren’t widely tradable yet, and their value remains speculative. Bitcoin hit $1 after years; Pi’s journey is just beginning.
Centralized Control: Critics note the core team controls nodes, undermining decentralization claims—a stark contrast to Bitcoin and Ethereum’s distributed networks.
Delayed Promises: Years of mainnet delays (originally slated for 2021) eroded trust. Even now, its ecosystem lags Ethereum’s 3,000+ dApps.
Referral Hype: The invite-based growth resembles multi-level marketing, raising pyramid scheme concerns—unlike BTC or ETH, which grew organically.

Risks to Watch Out For

Pi Network isn’t without pitfalls, especially its mandatory Know Your Customer (KYC) process, which could be a double-edged sword.

KYC Privacy Risk: To migrate coins to the mainnet, users must submit IDs and selfies. While intended to prevent bots, this has sparked fears of data breaches—e.g., a 2021 leak in Vietnam exposed user info. Unlike BTC’s pseudonymity or ETH’s optional KYC on exchanges, Pi’s requirement is non-negotiable, risking identity theft if mishandled.
Loss of Coins: Missing the KYC deadline (extended to February 28, 2025) means forfeiting older Pi balances. This pressures users and could alienate late adopters.
Regulatory Heat: Authorities in China and Vietnam have flagged Pi as a potential scam, citing its KYC and unregistered status. Legal risks could disrupt growth.
Market Volatility: Post-launch, Pi crashed 65% from $1.84 to $0.64. If it follows tap-to-earn tokens like Notcoin (down double digits), early hype may fade.
No BTC/ETH Killer Yet: Replacing Bitcoin (market cap: $1T+) or Ethereum (DeFi leader) requires more than users—it needs infrastructure, trust, and adoption Pi hasn’t proven.

Image: KYC requirements raise security questions—how safe is your data?

Conclusion: A Gamble Worth Taking?

Pi Network offers a tantalizing vision: a crypto for the masses, eco-friendly and accessible. Its pros—mass adoption potential and low-cost entry—hint at a slim chance to challenge BTC or ETH, especially for microtransactions. But the cons and risks, notably KYC vulnerabilities and centralized control, temper optimism. For now, treat Pi as an experiment: join if you’re curious, but don’t bet the farm. Research deeply, secure your data, and watch its dApp growth—it’s the wildcard that could tip the scales.

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