Author: Geclaveria
Pi Network Pioneer Philippines
As of this writing, there are now more than 5000 cryptocurrencies out there with a total market capitalization of more than 270B USD in around more than 20000 markets (https://coinmarketcap.com/) worldwide.
The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in 2009, reaching over 42 million Blockchain wallet users at the end of September 2019. Blockchain is the technology that made Bitcoin popular and is a critical part of most cryptocurrencies. A “block” in this case refers to a record of the owners of all bitcoins, as well as the previous owners. Since this “chain” of ownership is distributed globally, it is extremely difficult to alter the ownership records. (https://www.statista.com/statistics/647374/worldwide-blockchain-wallet-users/).
The increase in blockchain wallets proves that more and more people are adopting cryptocurrency. This cryptocurrency or digital money is designed to replace the existing circulating money as part of its evolution. Cryptocurrency functions as the same as physical money, as medium of exchange, the only difference is that cryptocurrency has no physical form and some were not regulated by central authority thus it is being called “decentralized”.
Some people were wary on this new kind of money since it has no governing body to back it up. Might be true. However, in the evolution of money where beads, shells, etc. were used as medium of exchange. This beads or shells became a storage of value where it can be exchanged into other goods/products. The dilemma facing by cryptocurrency could be the same during the early stages of evolution of money.
Purpose of Cryptocurrency
Acceptance of cryptocurrency around the world in 2017 per Thomsonreuters (image owned by Thomsonreuters).
As mentioned above, the purpose of cryptocurrency is to replace the existing circulating physical money. Many business entities are accepting Bitcoins and other cryptocurrencies, Overstock, Expedia, Shopify to name a few. But still the use of cryptocurrency as a medium of exchange is largely underutilized. The main reason behind is that most of holders are looking into cryptocurrency as an INVESTMENT instead of fiat replacement.
From the image below, only 30% of holders uses cryptocurrency to purchase or send to someone and majority has not actively using at all. This is evident that holders were keeping their cryptocurrencies most likely for trading purpose or investment.
What about Pi
Soon Pi will be added in the ever growing numbers of listed cryptocurrencies and its market capitalization to the existing total cryptocurrency market cap which is now 270B USD as of this writing.
Pi will have its share on rapidly growing ecommerce, by becoming the first digital currency for everyday people and in its vision to build the world’s most inclusive peer-to-peer marketplace, fuelled by Pi, the world’s most widely used cryptocurrency.
While Pi is still in its beta form, no value yet, it is already been used as a medium of exchange. Core Team executed its first transaction when they bought the domain pi.app for 10000 Pi. When Pi Network launched their KYC and In-app transfer to selected Pioneers, more transaction was made. Some Pioneers were pushing the value of Pi to be 10 USD:1 Pi, others as 1:1.
With more than 2.5M Pioneers around the globe, most likely majority of Pioneers if not all are treating Pi as an investment as well. With the mind-set that Pi will overthrow Bitcoin and its value will increase dramatically following the footstep of Bitcoin. Now the question is, how many of 2.5M will use Pi as medium of exchange as replacement to physical money without thinking its worth?
Unfortunately majority of holders of cryptocurrencies are not living by its purpose.
