How is the price of an asset determined in US dollars?

The total amount of dollars invested in an asset (market capitalization)
should be divided by the quantity of the asset (circulating supply). Thus, Bitcoin's price is calculated as follows:
1.7 trillion / 19 million = 89,000 USD. *Bitcoin's total supply - 21 million. 
In other words, the more dollars invested in an asset, the higher its price at its total supply.

What determines the demand for a cryptocurrency?
Demand is always shaped by a combination of utility and accessibility.

Are Bitcoin and other cryptocurrencies sufficiently useful and accessible?
There are approximately $150 trillion in the world, but only $1.7 trillion is
invested in Bitcoin and $2.9 trillion in all cryptocurrencies combined. This means that, so far, cryptocurrency remains a very small fraction of the global financial system. This can be explained by relatively low utility and accessibility.

Example of Bitcoin:

  • It failed to become a universal payment method.

  • Minimum transaction time is 10 minutes, and can reach hours if network is congested. 

  • Mining requires high costs.

  • Currently, aside from buying it, there is no other realistic way to obtain Bitcoin.

  • Bitcoin has turned into an asset for wealth accumulation, similar to gold bars.

Clearly, other cryptocurrencies haven't particularly succeeded either. The total market capitalization of all cryptocurrencies combined is still lower than Bitcoin's alone.
Even though some of them have lightning-fast transaction speeds, they
haven't gained enough popularity because there is no strong incentive to
accumulate them.
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Further analysis of Pi's utility and accessibility, and a potential price calculation:
Why can Pi Network grow faster than other cryptocurrencies?

  1. Limited mining rewards
    Previously, users could mine more Pi, but now the mining rate has decreased (2.5 Pi per month).
    This creates scarcity and stimulates active user acquisition.

  2. Referral system (incentive)
    By inviting new users, the referrer earns additional mining speed.
    This creates a strong viral effect, making the network self-growing.

  3. Ease of entry (accessibility)
    Unlike traditional mining (which requires powerful computers or investments), here you can mine Pi on a smartphone.
    This makes Pi accessible to millions of people, especially in countries where traditional cryptocurrencies are hard to use.

  4. Social effect and community
    Pi is actively developing its ecosystem—from in-network payments to various dApps (decentralized applications).
    Users are motivated not just to hoard Pi, but to use it, creating a real economy within the network.

  5. Lightning-fast transaction speed
    Unlike Bitcoin, Pi offers instant transactions, making it more practical for daily use.
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Conclusion:

✔ Pi Network is indeed growing faster than many other cryptocurrencies due to its referral model and low entry barrier.✔ However, its long-term success depends on real-world adoption and liquidity.✔If Pi Network can develop its ecosystem and retain users, it has the
potential to become a widely used cryptocurrency for everyday
transactions.

✔Pi combines two advantages: it is suitable both as a payment method and as a store of value.
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Potential Price Calculation:


Let's
assume that, considering the advantages of Pi over Bitcoin and other
cryptocurrencies, it manages to capture a significantly larger market
share.
Assuming it reaches $5 trillion in market capitalization:
5T / 100B (Pi total supply) = 50 USD

Thus, if Pi Network continues to develop and attract more users, it could
potentially reach a price of $50 per Pi. But we also need to consider
the fact that the current circulating supply of Pi is only 7 billion. We
don't know how fast it's going to grow. It's been 15 years and Bitcoin still hasn't reached it's total supply of 21 million. 


P.S. Currently PI Network is ranked 11th largest cryptocurrency on Coin Market Cap.

#pi #PİNetwork #PiNetworkMainnet #PiCoreTeam #PiOnBinance