Most frequent questions – Pi Network
In this article, I’m going to answer the most frequent questions that come up to new users that join the PI network. So you know what you’re getting into. If it’s worth doing, how to withdraw money when phase three is going to start, and so on.
Now, let’s look at the most frequent questions that people have when they join or consider joining the Pi Network.
Is Pi a scam
The first among those questions is obviously If Pi is legit or if it’s a scam. If you want to know more about why, in my opinion, PI is definitely legit and it’s a great opportunity for everyone. Also, if you didn’t sign up for Pi so far, you might want to consider using my invitation code.
Besides the question, of Pi is legit or if it’s a scam, one of the other important questions is if PI is free money or not. And the official answer to that question is no Pi is not free money. But if you think about it, it actually is free money to some extent. You can compare it, for example, with Bitcoin in its early days, where it was possible to mine, Bitcoin on crappy computers, and where the cost of electricity did not outweigh the value of coins that you generated. In fact, because the mining difficulty was lower and so on, you could mine a bunch of coins with almost no effort. So back then, you also got Bitcoin almost for free compared to the electricity that you paid, which would nowadays be worth millions of dollars. And when we look at this, we can see the Pi is in a similar state.
Currently, you can join PI for free. All you have to do is push a button once per day on your phone. And as a thank you for being active or because you push that button, you will receive Pi credited to your wallet every day. So as a result, basically, for doing almost nothing, for investing five seconds of your time, you will receive Pi that hopefully will Pi achieves phase three, will have some value, making it almost free money.
Now there’s a downside to this, of course, because if you look at Pi as something that is free money, and once it can actually be exchanged, you just start selling your coins, it will instantly crash the value of Pi because any currency out there doesn’t matter if it’s Bitcoin or US Dollar or Euro. All of those currencies only have a value because there is a supply and demand. There are people paying with that currency, people that want to exchange it for another currency, and so on. And if everybody just wants to get rid of their Pi coins, what will happen is Pi would become useless instantly the moment it can be traded. So it’s important that you look at it as something long-term, again, similar to Bitcoin.
Imagine your mined in the early days, and you had 10,000 Bitcoins or something like that. And the moment Bitcoin actually had a financial value, you instantly sold them. You would have maybe gotten a dollar or $2 for all your coins. And today you would really regret that decision because you gave away millions. And we can apply the same thing to Pi. If everybody, as soon as Pi reaches phase three, starts to dump their Pi to get Euro, Dollar, or whatever other currency you want to have, or an alternative cryptocurrency for that matter, then Pi will instantly lose in value because nobody wants to buy Pi, but everybody just wants to get rid of it. And that may even be the problem that you try to sell it, but nobody will be willing to buy it. And that all would be caused because nobody believes in the project.
So, it’s important that when you sign up for PI that you are aware that yes, you can get free Pi coins right now for the foreseeable future. And yes, those Pi coins will eventually, also most likely have a value.
So again, it’s important to understand. Yes, theoretically PI is something like free money right now, but you have to look at it long-term. While you get Pi coins now for free, you should not, once it can be changed or exchanged, sell your coins instantly, because that will not do you any favor because you may end up regretting it if the value of Pi increases over time and you would actually do something that harms the short term value of Pi, once it reaches phase three.
How does the Pi app actually work
Now the next question is also something that confuses. And the question is, how does the Pi app work and how can you increase your mining? And how does the mining actually work? People know from Bitcoin mining that people might on their computers or they have special hardware for mining and so on. And all of that actually creates a load on their devices. So it takes power from your computer to generate or mine Bitcoin other cryptocurrencies, however, the Pi app doesn’t use any kind of additional electricity or data on your mobile phone. And even if you close your Pi app, you’re still mining. And that’s why some people mistakenly claimed the Pi would be a scam, but it works somehow differently.
The fact is all you have to do to receive Pi is open your pie up once a day and push a button. And as a result, your account will be credited with a certain number of Pi per hour for those 24 hours. So the Pi coins are not actually mined like Bitcoins are basically generated by solving complex mathematical calculations, but they already exist in some way. And you get them credited for being an active user. The goal behind this is to create an active user base.
Ideally, you don’t just open the Pi app and push the button and close it. But also you check the announcements here and there. You may be active in the chat and connect with other people and so on. So that there is actually an active community of millions of users the day Pi achieves phase three, where it will be tradeable.
How you can earn more pi coins
Now the second part of the question is how can you earn more pie per hour? And there are multiple ways to do this. First of all, when you are mining, you receive 0.20 Pi per hour. So 4.8 Pi per day. But it doesn’t stop there. After three days of mining, they don’t have to be consecutive, but once you’ve completed three days of mining, you can set up a so-called security circle, and in your security circle for the first five people that you add there, your mining rate will also increase 0.04 Pi per hour.
So if you add five people, it will actually increase by 0.20 Pi per hour doubling your initial mining rate. And on top of that for every member that you invite to Pi. When they are also actively mining, so when they also push the button, once a day, your mining rate increases by an additional 0.09 Pi per hour.
Now there is no limit as to how much Pi per hour you can earn. You can simply invite more people. And in fact, I personally recommend that everyone at least tells their closest friends and family about Pi because there are zero risks to signing up. There’s no investment required. And as a result, once Pi achieves a real value, again, it’s the closest thing to free money there is. And if you keep your Pi coins for a couple of years, it may actually eventually turn into a huge amount of money.
Do I continue to mine while the app is closed
Now, I already partially answered the next question, but I want to have it as a dedicated question and answer as well, for people looking for it. And the question is, do I also receive Pi, or does my app also mine Pi coins when I close or leave the app. And the answer is yes because Pi doesn’t actually mean mine on your phone. You get the coins credited. All you have to do is push the button once a day and they will then be credited over the next 24 hours onto your Pi account. With that, we move on to the next question.
What are security circles
And that is what are security circles and what are they good for now? Currently, I mentioned it earlier. If you add five people to your security circle, it will increase your Pi per hour rate by 0.20. So one benefit of the security circles is obviously currently that you can mine more coins. However, that’s not the real purpose of security circles. The real purpose is actually, that you should only add users there that you trust.
So people that, you know, personally, people that you know are human and people that you know are very, very unlikely to try to scam or defraud other people. Pi will use the security circles, basically as a verification system to judge which users are legitimate and which users may be scammers, for example.
So that’s that mean that currently should only add users that you personally know to your security circle? No. Right now, if you don’t have five users invited that you’re personally no one trusts and simply add any user that you can add to your security circle because right now Pi is not live Pi still in phase number two out of three.
This means currently there is no real-world application to who you add to that security circle. Currently, the only difference that it makes us how many Pi per hour you get. So your goal currently is to simply have five people in there. It doesn’t matter if you know them if you trust them or whatever, just put them in there right now. So you earn more Pi.
However once Pi reaches phase three, you should make sure that you only have trusted contacts in your security circle. One question that goes along with, is Pi a scam or is it legit? How much is it worth? And all that stuff is when will Pi become a real thing that you can actually exchange against real money. And the answer to that is once Pi achieves or reaches phase three.
In phase three, Pi will be a full cryptocurrency that can be traded on exchanges. However, there is no date set for phase three. There are certain criteria. First of all the developers behind Pi have to finish some of their work. And in addition to that, there is a soft limit that may change, currently, it’s set at 10 million Pi users. So once that amount of people has reached the mining for Pi coins may stop.
Although, it has been mentioned that maybe the 10 million user limit may increase to a hundred million users so that people have more time to join. Don’t worry at the moment, there are slightly more than 8 million users using Pi. So overall there’s still some time to sign up, create your free account, and actually receive Pi coins for free. But again, overall, at some point the mining or the free mining will stop and people will not receive free coins anymore, which will cause a limited supply. And will ensure that based on supply and demand, there will be a real value for the coin. Again, once phase three is achieved.
Can I mine on multiple devices
Another important question, is if you can mine from more than one device? And while I initially said, you can just install the app on your iPhone and iPad and so on, and then basically create multiple user accounts. That will actually not work in reality. Because each user has to go for a KYC process, which stands for know your customer and prove that he is a unique human individual. So, at the end of the day, once Pi goes closer, to phase three, or phase three, actually launches, there will only be one user or one Pi account per actual human being.
So there’s no point in creating accounts on multiple devices. However, you can install the app on multiple devices and also log in there. If it makes sense as a different question. At the end of the day, one user should have only one Pi account. And eventually, even if you try now to outsmart the system, once the KYC process asks you to verify that you are a human, you will only be able to verify one account. And therefore, the other accounts that you created will lose their pie coins anyway.
Is the Pi app a cryptocurrency wallet
Now another frequent question is if the Pi app is actually something like a cryptocurrency wallet and the answer to that is a simple, yes. Currently PI is not a full-grown or fully built cryptocurrency, but once phase three is reached the Pi app will actually serve as the cryptocurrency wallet for your Pi coins and you will then be able to use it to send and receive coins and exchange them on certain exchanges.
How can I withdraw my coins
Now last but not least when it comes to frequently asked questions regarding Pi: how can I withdraw my Pi coins? Currently, you cannot withdraw your Pi coins because currently Pi is in phase two out of three, and it does not have any real value. Only once Pi achieves phase three, you will be able to exchange your Pi coins or withdraw your Pi coins on certain exchanges like you currently could do with Bitcoin and other cryptocurrencies.
So at the moment, what you have is an opportunity to generate free coins. And you should not look at it as free money, because if all you’re doing is signing up to generate a couple hundred or maybe a couple of thousand pie coins to instantly sell them. First of all, you will not get a lot of money on the day Pi launches. And second of all, you will harm the whole Pi economy.
If enough people will instantly try to sell their Pi coins, there will not be enough people willing to buy and therefore the value of. Pi will instantly or would instantly crash. So you need to see Pi for the opportunity that it is. Again like Bitcoin in its early days. Imagine the first Bitcoin transaction that took place was one guy ordering or paying for two pizzas online with Bitcoin. And he paid 10,000 Bitcoins for those two pizzas. Now imagine today, those two pizzas would have a value of 130 million US Dollars.
Now, obviously, it’s important that when Pi reaches nice number three, that not everybody just holds their Pi and never trades them or uses them because that would also make Pi more or less worthless. But it’s important to understand the difference between using some of your Pi coins in an early stage, once phase three is reached, to pay maybe for a pizza online or for an eBay purchase or whatever else you can use it to actually give Pi a reason for being, and create supply and demand and therefore help increase the value of Pi, which will be the right thing to do again, to help Pi establish itself on the worldwide markets.
Whereas, if you instantly on day number one, when Pi can be traded, try to sell thousands of Pi coins, and hundreds of thousands of other users do the same all you will do is crash the value of it Pi instantly, and nobody will have anything out of it. Again, it would be the same as if every Bitcoin early adopter on the same day, maybe when Bitcoin first achieved $10 per coin.
If all of them or 50% or 80% of Bitcoin wallet holders would have instantly tried to sell all their Bitcoins for a value of $10 per coin or $1 per coin there would have been so much supply people wanting to sell Bitcoin, but not enough people willing to buy. And it would have instantly crashed the value of Bitcoin permanently. So it’s important to understand or see Pi for the opportunity it is. It’s something like free money, but it’s not free money in a way that your mine Pi.
Now on the first day of face number three, you’ll instantly cash it out and you will be rich. That’s not how it works. It’s an opportunity for you to become an early adopter to become a pioneer. That’s why you also receive Pi coins for free currently, and then once Pi reaches phase three to use it with sense. Keep in mind that if you just try to dump thousands of coins on the market, that it will not do you any good, because you will not get the best value for your coins and it will harm the entire Pi economy as well. So again, Pi currently cannot be exchanged.
And even once it reaches phase three, you shouldn’t cash out all your coins immediately, but maybe consider keeping a couple hundred or a couple thousand coins on the off chance that pie in 10 years or 15 years from now also is worth $10,000 per coin. So you don’t regret that in the future.