In the dynamic realm of the cryptocurrency market, Pi Network has emerged as a topic of significant interest. Let's first delve into the bearish news surrounding Pi Network and then explore various types of virtual currencies.
Pi Network, launched in 2019, introduced a novel approach to cryptocurrency mining by allowing users to mine Pi coins directly from their mobile phones. This low - cost and accessible method attracted a large user base, with over 6000 million members from more than 230 countries and regions by 2025 (data as of February 2025), and over 1900 million members completed KYC verification, and more than 1000 million pioneers migrated to the Pi Network mainnet.
However, there are several bearish factors. First, the valuation of Pi Network has raised concerns. Despite a recent strong rebound, critics argue that its $100 billion valuation might be inflated, especially considering its relatively short time in the open market. For instance, on June 26, 2025, when Pi first debuted on the exchange, it soared to $3.00 but then rapidly dropped to $0.60 as early investors cashed out.
As of July 16, 2025, the price of Pi coin has been struggling near the long - term support level after multiple failed breakouts. Although the bulls are trying to stabilize above the key level, the overall structure indicates a weakening momentum. If the demand fails to pick up, the price could potentially collapse. On July 20, 2025, the Pi coin price was $0.4445, down 0.8% (-$0.003584) from the previous value, with a 24 - hour trading volume of $40,880,124.83.
FAQ: Why do some people think the valuation of Pi Network is inflated?Answer: Pi Network has only been in the open market for a short time. Compared with other established cryptocurrencies, its market performance and fundamentals may not fully support a $100 billion valuation. Also, the initial price fluctuations on the exchange, like the rapid drop after the debut, suggest that the high valuation might be due to speculation rather than real - world value.
Pi coin is a virtual currency developed by Nicolas Kokkalis and Chengdiao Fan in 2018. It powers the Pi Network, a platform that encourages decentralized peer - to - peer transactions. The underlying technology of Pi coin is similar to Ethereum, featuring strong decentralization and good security. What sets Pi coin apart from other cryptocurrencies is its unique mining mechanism. It is based on a calculation related to pi, which makes the mining process more fair, simple, and accessible. In fact, it is the only cryptocurrency that can be mined using a mobile phone.
FAQ: What is the biggest advantage of Pi coin's mining mechanism?Answer: The biggest advantage is its fairness, simplicity, and ease of promotion. The new mining mechanism allows more people, even those without expensive mining equipment, to participate in the cryptocurrency mining process through their mobile phones.
The cryptocurrency market is diverse, with various types of virtual currencies. Here are some common categories:
Bitcoin is the first and most well - known cryptocurrency. It operates on a decentralized blockchain network, using a proof - of - work consensus mechanism. Similar cryptocurrencies often aim to improve upon Bitcoin's features, such as transaction speed, scalability, or privacy. For example, Litecoin was developed as a "silver to Bitcoin's gold," offering faster block generation times and lower transaction fees.
FAQ: What is the main difference between Bitcoin and Litecoin?Answer: The main difference lies in the block generation time. Litecoin has a faster block generation time than Bitcoin, which means transactions can be confirmed more quickly. Additionally, Litecoin uses a different hashing algorithm.
Ethereum is the pioneer in this category. It introduced the concept of smart contracts, which are self - executing contracts with the terms of the agreement directly written into code. Other smart contract platforms, such as Cardano and Solana, aim to offer more scalable, energy - efficient, and secure alternatives to Ethereum. These platforms enable developers to build decentralized applications (dApps) on top of their blockchains.
FAQ: Why are smart contract platforms important?Answer: Smart contract platforms allow for the creation of decentralized applications, which can automate various business processes, eliminate intermediaries, and increase transparency and security in transactions.
Monero and Zcash are examples of privacy - focused cryptocurrencies. They use advanced cryptographic techniques to ensure the anonymity of transactions. In traditional cryptocurrencies, transaction details are visible on the blockchain, but privacy - focused coins hide the sender, recipient, and transaction amount, providing users with greater privacy.
FAQ: How do privacy - focused cryptocurrencies protect user privacy?Answer: They use techniques such as ring signatures (in the case of Monero) and zero - knowledge proofs (in the case of Zcash) to obfuscate transaction details, making it difficult to trace the flow of funds.
Stablecoins are designed to maintain a stable value, usually pegged to a fiat currency like the US dollar or a commodity like gold. Tether (USDT) and USD Coin (USDC) are popular stablecoins. They provide a bridge between the volatile cryptocurrency market and the traditional financial system, allowing users to store value and conduct transactions without the price fluctuations associated with other cryptocurrencies.
FAQ: Why are stablecoins important in the cryptocurrency market?Answer: Stablecoins offer stability in a highly volatile market. Traders can use them to park their funds during market downturns or to quickly move in and out of other cryptocurrencies without having to convert to fiat currency.
The cryptocurrency market is full of opportunities and risks. Pi Network, with its unique features, has attracted a large number of users, but it also faces challenges in terms of market valuation and price stability. Understanding the different types of virtual currencies can help investors make more informed decisions in this complex and ever - evolving market. As the market continues to develop, new types of virtual currencies may emerge, and existing ones may undergo significant changes.
It is crucial for investors to conduct their own research (DYOR) and stay updated on the latest news and trends in the cryptocurrency market before making any investment decisions.