$BTC While Bitcoin experiences strong increases and reaches record levels, the Pi Network project seems to face significant difficulties and decline. This contrast raises questions about the future of both currencies.
Reasons for Pi Network's Decline:
♦️ Lack of liquidity and real adoption: Despite the large user base Pi claims to have, the currency has not been widely listed on major exchanges yet (except for some partial and unofficial exchanges). This limits users' ability to trade the currency freely and makes its value unclear.
♦️ Transparency issues and security concerns: Questions arise about the project's transparency and management, along with concerns regarding the collection of users' personal data. Reports of unauthorized withdrawals of coins from users' wallets have emerged, increasing doubts.
♦️ Lack of tangible use cases: Despite discussions about developing an ecosystem and decentralized applications, there is still a lack of real and innovative use cases that justify the currency's value or attract serious investments.
♦️ 'Buy the rumor, sell the news': When Pi announced initiatives like the Pi Network Ventures investment fund, there was a brief surge in the coin's price, quickly followed by a decline, which some attribute to the phenomenon of 'buy the rumor, sell the news' where investors sell as soon as the news becomes official.
Reasons for Bitcoin's Rise:
✅ Spot ETFs: The launch of spot Bitcoin ETFs in the United States in early 2024 is a key factor. These funds have opened the door for institutional and individual investors to access Bitcoin more easily through traditional investment accounts, leading to massive capital inflows.
✅ Bitcoin Halving: The fourth Bitcoin halving event occurred in April 2024. This event reduces Bitcoin mining rewards by half, decreasing the new supply of the currency in the market and creating scarcity that typically contributes to price increases.
✅ Increasing institutional demand: Major companies and institutions continue to buy Bitcoin and integrate it into their investment portfolios, considering it 'digital gold' and a store of value.
✅ Overall stability and market outlook: Despite volatility, Bitcoin is increasingly seen as a relatively mature asset in the cryptocurrency market, and with improving global economic sentiment, investors tend to gravitate towards higher-risk assets like Bitcoin.
In general, the current situation highlights the significant gap between projects with wide adoption, strong liquidity, and clear use cases (like Bitcoin) and those still in their early stages facing significant challenges in delivering on promises (like Pi Network). The cryptocurrency market remains highly volatile and requires careful consideration before any investment.😎😎
What do you think about the future of 'phone mining' projects like Pi Network compared to established cryptocurrencies?
