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Pi Network: Will Pi Be the Global Currency of the Future?

by Insaf Ali 12 days ago in blockchain

Currency of the future.

Image @ Publish0x.com

If the Pi Network once becomes a global currency, there have to be a lot of low probability events that have to happen before that happens. And I'll make sure to talk about these low-probability events.

What would exactly have to happen for Pi coins to be used, like the dollar or the euro for everyday transactions?

And to make this vision clear I'm talking about massive adoption here, like everyday people using Pi coins to conduct everyday transactions, like your grandmother, your dad, your uncle, like pretty much everybody.

The first thing that has to happen is for people to want to move away from the world's reserve currency right now, which is the U.S dollar. This would mean that the U.S dollar would essentially have to become worthless, like what happened to the currency of Germany back in 1923.

I'm pretty much talking about massive hyperinflation, like the value of your savings or investing in a town becoming useless overnight. And this is unlikely to happen. Even with all the money being printed and all the money being borrowed most of the money being borrowed from Japan or China. No doubt both of these countries have an incentive to crash the US dollar.

The economies of Japan and China are too dependent on U.S consumers and selling the dollar would increase the price of their products in the U.S making consumers less likely to buy and pretty much killing their own economies in the process.

We also can view the printing of U.S dollars in isolation, even though Congress has authorized the trillions of dollars being printed since 2020. So as for other countries as well, Japan has authorized a $929 billion stimulus package to combat the pandemic and China also unveiled its $500 billion fiscal stimulus package.

Basically, the value of the U.S dollar isn't going to drop because every other country is also playing this money printing game. But this global money printing game will eventually be the reason why currencies around the world might eventually crash.

This is the first thing that needs to happen for cryptocurrencies to become the dominant currency used by people around the world.

Essentially, countries around the world had to screw up so bad that there's no other choice but to use cryptocurrencies. You see, each time a country prints or borrows more money, its currency loses a bit of credibility, and there will eventually be a breaking point where these currencies completely lose value.

Basically, money printing is okay on an individual basis, but the aggregate might eventually become a problem.

Now, I don't think countries around the world think that they have the infinite money glitch. And this is unlikely to happen again and again. But for this time, let's say that they do, let's say that we have the pandemic 2.0, 3.0, and also 4.0, the US is printing more money and so is other countries around the world and eventually gets to a point that hyperinflation really does happen your $1 million retirement account is now useless, your savings account is useless. Businesses can really operate because the money that they use has no value. 

For most people, this might be the right time for cryptocurrencies to take over but not so fast. The next thing that has to happen is for people to put their money into cryptocurrencies instead of commodities or other currencies, what's more, likely to happen is that there ought to be one or two currencies in the world that still have a bit of credibility.

That's where most of the money will go to. And not to mention commodities, like gold and silver, which have been trusted for 1000s and1000s of years.

Another question I have for you guys is once you really want to live in a world like this, when many of the global currencies around the world began to crash, we'll see so much suffering and despair in the world.

This is when radical people start sharing their message because they know that many people are looking for a solution and also an answer to the problems personally, this is when I'm going to start dipping out and move myself to some isolated forest until this whole thing settles down.

So in summary, it might not be so nice to see currencies around the world crashing. But let's say that this crash doesn't happen for another 10 or 20 years. And by that time, people have a pretty solid understanding and also acceptance of cryptocurrencies in countries like China, India, and also the US have created their own cryptocurrencies that are backed by themselves.

If this is true in a crash, those happen this does allow people to move their cryptocurrencies or US-based cryptocurrencies or Indian-based cryptocurrencies into more decentralized cryptocurrencies because I'm assuming all it really takes by then is a quick click of a button.

Let's say that this has happened and people are exchanging their government-backed cryptocurrencies for more decentralized cryptocurrencies. And the final step to this crazy scenario is for people to put their money into Pi coins instead of other cryptocurrencies.

The question now is why would they choose to put their money in something like a Pi coin as opposed to more popular cryptocurrencies like Bitcoin?

The answer to that is that they really wouldn't as a right now. This is because Pi coins are still unproven and still relatively small compared to something like Bitcoin, XRP, and Stellar. But this doesn't mean Pi coins don't have a chance in the future.

One thing that a lot of people don't understand is that each cryptocurrency has its own use case and purpose in the world. And in 10 to 20 years, we might have a wallet full of different cryptocurrencies for different uses. If you read me continues to be used for smart contracts, and Pi coins might even be used for consumer-to-consumer transactions or consumer-to-business transactions.

But the truth of the matter is high coins do have a long way to go before any of this can really happen to the Pi network. And also Pi coin needs to establish some sort of credibility of the blockchain that the Pi network runs on has to work in the marketplace that the Pi network is trying to create has to succeed.

This means that the pie economy has to have enough buyers, sellers, and also merchants and the platform has to continue to grow over time. And the coin has to grow so much in popularity, that eventually becomes a household name.

I told you guys my analysis was going to be crazy. And I wasn't lying to you guys, this is unlikely to really happen. But just bear with me for a while before I tell you guys where I really think the Pi network will be in the future.

Now, this is not an easy thing to do. And many coins have tried to make this a reality. And like I said earlier, much of this is pure speculation.

The Pi network and the pi coin have some characteristics that make them more tailored to become a cryptocurrency is used for everyday transactions.

Well, for starters, the pi network is much more accessible to people around the world. In fact, all you really need to be able to earn any pi is to have a cell phone and download the app from the app store. And this is different and much simpler from other cryptocurrencies that require more knowledge to be able to mine.

You can't say the same thing for a lot of other cryptocurrencies around the world. This accessibility might be the reason why pi coins become the go-to choice and when a crash does happen, think about the more recent hyperinflation cases that happen in countries like Zimbabwe, and you might think that Bitcoin might become the obvious case where people in these countries, but the problem here is that Bitcoin just isn't accessible for the average person there.

The volatility of the coin was not great for making everyday purchases. But what I can say is that most people will have a mobile phone in their pockets. 

This in return will allow them to buy, sell and transact pi coins. And from this, maybe you can make the case that pi coins will become the dominant currency for consumers to consumer transactions and also consumer-to-business transactions, assuming that government currencies around the world somehow crashes.

So basically, to sum up, in this crazy scenario, currencies around the world have to be so mismanaged that people have to be looking for something else. and by that time, cryptocurrencies also have to be so popular that people choose to put their money into these currencies instead of other foreign currencies or commodities.

Lastly, the pi network becomes an obvious choice because it becomes a household name, but personally, of right now, I can't really conceptualize or even imagine this to happen.

The pi network project right now is way too early for us to even consider this. Instead, here's what I really think happened with the project. In the next couple of years, when the coins are released, a market will be formed. And to be honest, this market right now looks pretty finished.

But over time, as a market continues to grow, corporations are going to start caring and with that, these corporations are going to be forced to buy huge amounts of pi coins to be able to advertise on the platform. With that more and more merchants are going to accept pi coins as a form of currency.

This is pretty much going to be a self-sustaining economy with no one in control. If I had to guess what will happen in the next five to ten years, I'm guessing that everyone will have a wallet full of different types of cryptocurrencies, these currencies are pretty much going to be used for different purposes, and the pi coins are going to be used to make transactions on the Pi network.

Now, I do think that this will happen, but the question now is how popular the pi coins be?

I think in the worst-case scenario, the pi now rug or pi coins will be a niche market for people who want to buy in exchange for things. It won't replace the US dollar. It will replace Bitcoin or Etherium. Instead, it's going to work alongside these other cryptocurrencies and real currencies. It's going to be its own economy on the internet.

blockchain
Insaf Ali
Insaf Ali
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