Stablecoins are increasingly favored in the cryptocurrency market due to their price stability, backing from real assets, and an increasingly clear regulatory framework. This is the preferred choice for many investors looking to avoid the strong volatility typically seen in the cryptocurrency market. However, the rapid development of stablecoins may impact the goal of becoming a global currency for projects like Pi Network. The analysis below will help you understand whether Pi is competitive enough with stablecoins, as well as the advantages and challenges the project faces on its path towards widespread adoption in the global cryptocurrency market.
Can Pi Network compete with stablecoins?
Pi Network aims to become a prominent global cryptocurrency in the long term with advantages such as accessibility, mining through a mobile application, and peer-to-peer transactions. However, to truly compete with stablecoins in providing price stability and user trust, Pi must overcome many significant barriers.
Stablecoins have a significant advantage due to being backed by fiat currencies and the trust of major financial institutions. In contrast, Pi Coin still faces issues related to price volatility, a limited listing portfolio, and legal challenges. Therefore, to dominate the global market, Pi needs to focus on developing practical applications and enhancing community trust.
Advantages that help Pi Network stand out among stablecoins
The biggest strength of Pi Network is its simple mining mechanism, which only requires tapping the application on the phone, without the need for knowledge about wallets or complex exchanges. This makes Pi much more accessible compared to other cryptocurrencies.
The Pi community has now reached about 65 million members, built on a referral invitation model, creating a strong network effect that stablecoins find hard to achieve. If Pi can enhance its real-world applications, it will be a strong support force for expanding its usage.
Furthermore, Pi is developing its own ecosystem with decentralized applications (DApps) and programming tools, especially the Pi App Studio using artificial intelligence to attract new developers. If successful, Pi could create a vibrant digital economy, increasing the value and appeal of this coin.
Challenges related to the price and operation of Pi Network
The Pi Network project is currently facing several issues such as centralized control, delays in identity verification (KYC), and a low number of active users. In particular, Pi is still in its early development stage, lacking backing from major investment institutions and evidence of real-world utility.
The price of Pi Coin once broke through a key support level, but the upward momentum was not maintained for long. The price quickly declined again and is currently trading around $0.4961, down 5% in the past 24 hours. If the downward trend continues, this coin may approach its all-time low of about $0.40.
Nevertheless, the potential for recovery still exists if demand increases, with a price increase potential up to $0.66. However, downward pressure remains heavy in the short term, making the future market for Pi difficult to predict.
Source: https://tintucbitcoin.com/stablecoin-co-pha-la-nguy-hai/
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