Key Takeaways:
- GCV Myth: The $314,159 Global Consensus Value is inspired by optimism but lacks economic feasibility.
- Market Dynamics: Pi Network’s price will be determined by supply and demand when tradable on exchanges.
- Realistic Valuation: Achieving a $314,159 per Pi coin would require a market cap far beyond the global economy.
YEREVAN (CoinChapter.com) — Pi Network launched in 2019 and quickly gained attention. It offered a way to mine cryptocurrency directly from smartphones, attracting millions of users, known as “Pioneers.” With over 50 million users, Pi Network became popular for its simple, accessible approach to mining.
Pi Network’s appeal lies in its mission to decentralize the crypto ecosystem, allowing anyone to participate without needing expensive equipment. As the network approaches its open mainnet launch, discussions around its value have intensified, particularly regarding the Global Consensus Value (GCV).
The $314,159 Valuation Myth
Many Pi Network users believe in the Global Consensus Value (GCV) concept, which suggests that each Pi coin could be worth $314,159. This figure draws inspiration from the mathematical constant Pi (π) and reflects the Pi community’s optimism. Nicolas Kokkalis, one of Pi Network’s founders, stated,
“Pi is worth what Pioneers make it worth.”
During the early stages of Pi Network, users assigned their own value to Pi for transactions within the community, supporting the GCV idea. However, as Pi Network prepares for its mainnet launch, the feasibility of this valuation is being examined.
Pi Network’s Realistic Valuation: Understanding the Supply and Market Dynamics
Notably, Pi Network’s expected circulating supply is between 10 to 20 billion coins, according to its whitepaper. To achieve a value of $314,159 per coin, the network’s market capitalization would need to exceed $6 quadrillion. Clearly, this amount is far beyond the global economy’s scale.
In fact, when Pi trades on exchanges, market dynamics like supply and demand will determine its price, not speculative values like GCV․
As Pi Network transitions to the open mainnet, its price will likely differ from the GCV. Primarily, market conditions will set Pi’s value based on available supply and demand. Above all, while Pi Network has a large user base, the realities of the cryptocurrency market will shape its future value.
