Pi Network: Can It Compete with or Beat Bitcoin?

Launched in 2018 by former Stanford University developers, Pi Network has rapidly gained popularity, attracting over 50 million users

Pi Network, a mobile-first cryptocurrency project, has quickly amassed over 50 million users since its launch in 2018. The initiative aims to make cryptocurrency more accessible and practical than Bitcoin.

In contrast to Bitcoin, which necessitates specialized mining equipment and substantial energy consumption, Pi Network enables users to mine coins using their smartphones with minimal resource utilization.

One key advantage of Pi Network is its ease of use. Users can simply tap a button on their mobile devices once every 24 hours to mine Pi coins. This stands in stark contrast to Bitcoin mining, which requires specialized equipment and incurs hefty electricity costs.

The network has experienced exponential growth in its user base, reaching over 60 million miners (referred to as pioneers) as of late 2024. This large community is essential for establishing a robust ecosystem around the currency.

The developers have announced that over 27,000 businesses are ready to accept Pi coins once they become tradable. This focus on real-world use cases could set Pi apart from Bitcoin, which has largely been used as an investment asset rather than a functional currency.

The mining process in Pi Network employs a unique mechanism derived from the Stellar Consensus Protocol (SCP). This enables users to earn rewards for their participation while contributing to maintaining network security through a decentralized approach.

The main challenge for the project has been transitioning from its current state to a public mainnet where tokens can be traded freely. As of January 2025, the developers have extended the Know Your Customer (KYC) verification period to facilitate this transition for millions of users.

Despite its promising features, several challenges could hinder the success of Pi Coin:

For any cryptocurrency to succeed, it must gain acceptance among users and merchants alike. While there are businesses ready to accept Pi coins, actual adoption will depend on how well the coin performs post-launch and whether it can maintain value. So, market acceptance is an issue.

There is a risk that many pioneers may sell their coins immediately after they become tradable, similar to trends observed with other cryptocurrencies like Hamster Kombat and Catizen. If this occurs en masse, it could lead to price volatility and diminish confidence in the coin’s long-term value. So, speculation risk is another issue.

Cryptocurrencies operate in an uncertain regulatory landscape that varies significantly across countries. Any adverse regulations could impact the usability and acceptance of Pi Coin. So, regulatory environment is yet another issue.

Competing against established cryptocurrencies like Bitcoin poses another challenge for Pi Network. Bitcoin has built up significant brand recognition and trust over time; thus, convincing users to switch or adopt another coin will require substantial effort. Competition with established coins is therefore another issue.

As of now, the value of Pi remains undetermined since it is not yet listed on any exchanges or actively traded in financial markets. Until there is clarity on its market value post-launch, potential investors may remain skeptical about its viability compared to established cryptocurrencies.

So, while Pi Network presents an innovative approach aimed at democratizing cryptocurrency access through smartphone mining and commerce integration, its success will ultimately depend on overcoming significant challenges related to market acceptance, speculative behavior among users, regulatory hurdles, competition with established cryptocurrencies like Bitcoin, and establishing a clear value proposition once trading begins.