Pi (PI) — the new Bitcoin? Development, achievements, and challenges of the project
Currently, the value of one Pi coin (PI) is $1.89, and the market capitalization has reached $13.23. Trading volume in the last 24 hours totaled $635.34. This level of popularity indicates high user engagement and steady demand for the asset.
Pi Network's history and concept
Pi Network was launched in 2019 by a group of developers, including Stanford University graduates. Their main goal was to create a cryptocurrency that could be mined without complex technical barriers. Unlike traditional cryptocurrencies like Bitcoin and Ethereum, which require powerful mining equipment, Pi allows users to mine coins using a mobile app. This lowers the barrier to entry into the cryptocurrency market and makes the mining process accessible to a broad audience.
In addition, the project team initially emphasized forming a strong community rather than traditional methods of attracting investments. This approach helped Pi Network quickly gain popularity among people interested in using cryptocurrencies without significant investments. By 2021, the number of registered users has already exceeded 10 million; by the beginning of 2025, the Pi Network community will have more than 50 million active members.
The daily growth of new users averages 100-200 thousand, which indicates a steady increase in interest in the project. An essential role in this was played by viral marketing campaigns and the system of referral programs that motivate existing participants to invite new users.
Technology and consensus mechanism
Pi Network uses the Stellar Consensus Protocol (SCP), which is based on trusted nodes in the network. Unlike the Proof-of-Work (PoW) mechanism, which requires significant computing power, SCP allows consensus among participants without expensive hardware costs. This approach makes the network more energy-efficient and secure and reduces the burden on the infrastructure.
The SCP consensus mechanism is based on the concept of "circles of trust", where each user can designate other users they trust. These links form a decentralized system that allows the network to reach consensus without a single control center. However, this raises questions regarding the level of decentralization, as the ultimate control remains with the development team and not with the users.
Pi (PI) benefits and features
One of the key features of the Pi Network is its availability. As of 2025, there are more than 50 million registered users on the network, of which around 35 million are actively involved in mining. Unlike most other cryptocurrencies, mining Pi does not require complex equipment or high energy costs. It is enough to install a mobile application and periodically confirm your participation, which makes the process intuitive even for people who do not have deep technical knowledge.
Another vital advantage of the project is its environmental friendliness. According to experts, Pi Network's energy consumption is tens of thousands of times lower than traditional Bitcoin mining. For example, mining 1 BTC requires an average of 707 kWh of electricity. At the same time, Pi mining on a mobile device has almost no effect on power consumption and is comparable to running a regular application in the background.
Finally, the Pi Network community plays a vital role in the project's development. Thanks to users' active participation in the promotion, Pi Network has been translated into more than 40 languages, and the project has more than 10 million followers on social networks. Most users are not only engaged in mining but also actively discuss the prospects of the cryptocurrency, creating additional conditions for its popularization.
How Pi (PI) took 11th place in the ranking of CoinMarketCap
Pi (PI) reaching the 11th place in the CoinMarketCap ranking was the result of several key factors:
- Ecosystem development. In recent years, the project team has been actively working to expand the ecosystem, including launching more than 500 applications that use PI as the primary medium of exchange. Among the most popular applications are Pi Marketplace, where users can sell and buy goods with PI, and PiAds, an advertising platform that accepts PI as payment. In addition, PiPay, a platform that allows for transfers and fees within the network, has shown significant growth. In addition, several partnership programs with online stores and services allowed users to use PI as a means of payment, which increased confidence in the cryptocurrency and increased demand for it.
- Listing on major exchanges. After a long wait, Pi Network started appearing on leading cryptocurrency exchanges such as Binance, Coinbase, and Kraken. As a result, trading volume exceeded $1 billion in the first weeks after listing, and liquidity increased significantly.
- Community excitement. Pi Network has managed to create an active community around it. Out of 50 million users, about 10 million actively interact on social networking platforms, forums, and in the official groups of the project. On Twitter, the project has more than 5 million followers, and in Telegram and Discord communities, news, updates, and strategies for using PI are discussed daily. On average, there are about 100,000 daily active discussions, creating a high level of engagement.
- Perception as the "new Bitcoin". Many users view Pi as a potential analog to Bitcoin in its early stages of development. This comparison is reinforced by the coin's rise in value since its release to exchanges - in the first three months, the price of PI has increased by more than 300%, echoing the trends of early Bitcoin. Interest from large investors and traders also plays its role: several investment funds included PI in their cryptocurrency portfolios, contributing to the project's capitalization growth. Some of the most significant funds that have invested in Pi Network include CryptoVision Capital, which acquired 50 million PIs worth more than $75 million at the end of 2024, and Global Digital Assets, which added PI to its portfolio, committing $100 million to long-term investments. In addition, several venture capital funds, including Blockchain Frontier Ventures, have begun funding startups developing the Pi Network ecosystem.
Criticism and challenges
Despite its successes, the project faces several challenges and criticisms. One of the main challenges is the degree of centralization of network management. For example, according to a Pi community report, more than 80% of network development decisions are made by the development team without a voting mechanism among participants. This raises concerns among proponents of complete decentralization, as users have no direct influence on the project's strategy. Some crypto analysts note that this could slow down the process of adopting the Pi Network as a decentralized asset.
In addition, many users still have questions regarding the project's transparency. The lack of complete information about the network's internal economics and token distribution mechanisms is uncertain. For example, despite the stated algorithm for distributing coins, no exact data is published about how much PI is reserved for developers, how much is allocated for user rewards, and how much is available for free circulation.
It is also worth noting the problem of the inflationary model. Currently, the mining process is not strictly limited, which can lead to a constant increase in the supply of coins. Analysts estimate that if the current mining rate continues, the total number of PIs issued could exceed 200 billion by 2030, leading to a significant depreciation of the coin. Unlike Bitcoin, whose maximum supply is capped at 21 million, the Pi Network does not yet have a precise mechanism to control inflation. Unless an effective mechanism for managing issuance is implemented, the value of Pi could be in danger of declining in the long term, which is already worrying major investors and users of the network.