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Saturday, February 20, 2021

ُPi Network Crypto Currency

Pi Network Cryptocurrency and the Future of Digital Currency

These days, everyone is talking about the new Pi Network, anticipating it might replicate Bitcoin's success and lead to wealth for early adopters. Similar to the Bitcoin frenzy, the appeal here is strong: it's free, and trying it costs nothing. Many people are giving it a shot, hopeful that it might be the next big digital success story.


The Pi Network, currently in its experimental phase, has over 10 million users worldwide. However, it's yet to connect with blockchain or cryptography, making its value uncertain. Some speculate its price could reach between $1 and $10 once it integrates with blockchain, but for now, it remains a project in development.

 

Launched on March 14, 2019, Pi Network became popular because its founders were PhD graduates from a reputed university and aimed to make digital currency accessible through a mobile app. Unlike traditional cryptocurrencies, Pi mining doesn’t require complex computing equipment or large electricity resources, making it more user-friendly.

 

Currently, Pi Network has four types of users:

1. Pioneers: Regular, verified users.

2. Contributors: Users who vet trusted users for the network.

3. Ambassadors: Users who invite others to join the Pi Network.

4. Nodes: Users running Pi Network software on their computers, often both pioneers and contributors.

 

Pi’s mining speed relies heavily on referrals, meaning the more people a user invites, the faster they can accumulate Pi coins. The formula for Pi mining speed is: 

\[

(X \times 25\% \times (0.39 \, \text{Pi/Hr} + 0.39))

\]

where \( X \) is the number of people referred.

 

If Pi Network eventually links to blockchain technology, free Pi mining may be phased out, as real cryptocurrencies rely on cryptography and secure blockchain protocols. Real cryptocurrencies, like Bitcoin, are decentralized and secure, accessible only through private cryptographic keys, allowing transfers without revealing the user’s identity.

 

Bitcoin, for instance, was launched in 2009 by an anonymous creator or group called "Satoshi Nakamoto." Its journey from obscurity to becoming a mainstream asset took time, but as it gained recognition, major investors like Elon Musk joined in. Today, Bitcoin's value has soared to around $49,000, with nearly 19 million Bitcoins in circulation.



Major corporations are also adopting Bitcoin; Tesla accepts it, Mastercard plans to support Bitcoin transactions, and other financial institutions are evaluating its potential. However, Bitcoin's price is volatile, which became evident in 2017 when prices fell dramatically due to a Chinese trading ban.

 


Aside from Bitcoin, there are numerous cryptocurrencies in circulation, and experts believe digital currencies could soon replace traditional cash, eliminating costs associated with physical money and increasing transparency in financial transactions. Cryptocurrencies could also help reduce financial fraud, money laundering, and corruption as they operate outside traditional banking systems.

 

Several countries are moving towards adopting digital currency in some form. El Salvador made history in September 2021 as the first nation to adopt Bitcoin as legal tender. The U.S., while not fully embracing digital currency, monitors Bitcoin and offers guidance on its use. The European Union has not banned digital currencies, but warns users of associated risks.

 

Other countries such as Canada, Australia, Denmark, France, and Japan recognize Bitcoin as a financial asset. Mexico, recognizing Bitcoin’s popularity, recently installed a symbolic Bitcoin ATM in its Senate building, underscoring its progress in adopting digital currency. Globally, nearly 400 billion dollars' worth of cryptocurrencies are in circulation, though over 40 countries have imposed some form of regulation on digital currency transactions, with nine, including China, enacting strict bans.

 

Pakistan, while undecided on digital currencies, is beginning discussions to explore this future-forward technology. Although crypto mining and trading are not mainstream in Pakistan, discussions are emerging on the economic potential of digital currency. The government of Khyber Pakhtunkhwa, for example, recently considered setting up crypto mining plants and issuing licenses for private companies interested in digital currency ventures. With abundant energy and talented professionals, Pakistan could significantly benefit from this sector, potentially earning substantial revenue.

 

While digital currency offers promise, it has its challenges. Its energy consumption is high, it is vulnerable to hacking if mishandled, and some risks of misuse, such as in illicit markets, remain. For instance, in India, kidnappers recently demanded ransom in Bitcoin to avoid identification.

 

The global movement toward digital currency underscores its potential as the future of finance. However, concerns over control, regulation, and security hold some countries back. To stay globally competitive, Pakistan must consider how to embrace digital currency while managing its complexities.

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