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Everyone was excited when the first migration of pi coins was released in the wallets of the pioneers. At the same time, the great effect of the unity of the pioneers in the use and value of their Pi Coins.
Even before the first transactions of the pioneers began, there was already a conflict that was happening with each other. This is the valuation or giving value to Pi Coin in a transaction. But where or how did it start? According to what was stated in the white paper in non-verbatim, “it’s the people that shall give value to Pi.” But what do these words want to convey to us? Is it giving value literally or figuratively? Who knows? The PCT did not state any details regarding those phrases. That is why, most of the people took it literally. The people made a value to a Pi Coin, hence, consensus value.
What is a consensus value? It simply means “the agreed value of such group or community”. If a group of people decides that 1Pi = $10, that’s their consensus value, if one decides 1Pi = $100, that’s their consensus value. The valuation now depends on the agreement between 2 or more people. It started at $10 then became $100 then $314 and it goes higher and higher. However, some big communities like China and Nigeria came up with $314,159. Many people are confused if it’s $314,159 or $314.159. Why? Because in some countries, the figures in their Pi Network app, instead of period (.), it became a comma (,) e.g instead of 99.00 it became 99,00.
However, most of the pioneers took it as $314,159, and it’s a huge value. The supporters of this value keep pushing and forcing everyone to follow this because they think that if most if not all pioneers will follow this valuation, this will be the exact value for Pi Coin when open main net comes. To the point that Pioneers engage into discriminating and throwing foul words to co-pioneers. Yet they do not exactly know the danger of this value.
This is my opinion, I may be wrong but for example, granting the $314,159 happens to be the value in the exchange or open main net. It’s a 100% sure that most if not all Pi holders will sell all their Pi, every holder will become instant millionaire. That selling, or in layman’s term “dumping” will cause the value of Pi to go down because everybody will sell their coin. It’s so ironic that people want to make the pi coin’s value to get higher yet in their minds they want to sell the coins? Remember that in cryptocurrency, one of the factors of the dip of such token is the selling, for example Bitcoin. If all whales sell most of their Bitcoin, the price of it will go down, hence, dip. Bear in mind that Pi Coin is a utility token, it must be used from time to time and to circulate and more circulation means more value. It’s main goal is DeFi.
On the business side, $314,159 is a one – sided value. It only favors the buyers. Why? The higher the valuation, the lesser Pi a pioneer will spend. For big businesses and businessmen, $314,159 is ok. But how about the small scale or small-time businessmen? Out of the total Pioneers all over the world, there are more small businesses than bigger ones, and there are more buyers than sellers.
Here’s the scenario. Example A and B are businessmen. A is a small-time businessman and B is a big shot. They are both Pioneers and both believe in Pi. They both value Pi as $314,159. A, being a small businessman can only sell limited number of products due to small capital and the replenishment of such product given the fact that Pi has no actual value yet. Why limited? Because if A keeps on selling his products at that valuation, it will all be run out in an instant and will have difficulties in replenishing the sold products. While B, on the other hand either can sell limited number of products or not. If B sells a product, he will not have any difficulties in replenishing given the fact that the latter is a big businessman. He can afford to sell without something in return while A cannot. See the difference?
While on the other hand, services which do not require paid resources are somewhat acceptable for such value. Services like, consultation, tutorials, graphic arts and multimedia (though it consumes electricity) and other services which do not require paid resources.
Yet many Pioneers are complaining that there are no or less sellers and they are demanding gadgets and cars and other luxury items because of that valuation. Remember, no businessman would trade his high-end car to a coin that has no actual value yet. They are expecting to buy such luxury items with Pi but that’s not how it works, it takes time. Plus adding the hype are the fake news and posts regarding the transactions of some people about the valuation. Keep in mind that the PCT did not say anything about Global Consensus Value (GCV), only made by the supporters and GCV will not be the exact or actual value of Pi. Regardless of what value it may be on the open main net, let us always be thankful that we mined it for free with less consumption of energy and let us all be united if we want this project to succeed.
In conclusion of my opinion, the phrase “it’s the people that shall give value to Pi” means that people shall use Pi to circulate to add value (monetary) to it and be wise in spending because of its value (importance). Let us be responsible and be thankful for the Pi that we have in our wallets.