The Pi Network price has plummeted in the past few weeks, resulting in losses worth billions of dollars. It crashed to a low of $0.6713 on Thursday, down by over 76% from its all-time high. It is hovering at its lowest level since February 21. Which coin is the better to buy, Bitcoin or Pi?
Pi Network Aims To Be a Better Bitcoin
Pi Network is a top cryptocurrency that was established to solve Bitcoin’s top challenges. For example, it addressed the issue of mining difficulty by making it easier for people to mine coins on their smartphones. At its peak, it had over 50 million active miners.
Pi Network also aims to power commerce globally through smart contract features powered by Stellar. Today, there are over 100 dApps in its ecosystem, a figure that the founders hope will continue to grow.
On the other hand, Bitcoin is known for its high mining and transaction costs. As such, a coin Satoshi Nakamoto hoped would replace the US dollar has become merely a store of value or an investment.
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Pi Network vs Bitcoin: Pros and Cons
So, a common question is whether buying Pi Network near its all-time low or Bitcoin closer to its all-time high is better.
Bitcoin (BTC) has notable advantages, particularly its long track record of success. Its price increased from nearly zero in 2009 to $85,000 today. Additionally, Bitcoin’s inflation has decreased sharply over the years as mining difficulty has increased. BTC has a supply cap of 21 million, and most of it has been mined.
Bitcoin is also popular among Wall Street investors, with total inflows into its ETFs rising to over $36 billion in approximately 16 months. Many companies, such as Tesla, Block, GameStop, Trump Media, and Strategy, are accumulating Bitcoin.
Pi presents a different and riskier investment. It has a supply limit of 100 billion, and less than 7 billion are in circulation. Over time, the network will release over 90 billion additional tokens, potentially diluting the value for existing investors.
Further, it is still early to predict whether the dApps in the Pi Network ecosystem will become popular over time.
Pi Coin vs BTC: Verdict
Bitcoin has a long and proven record as a store of value in the crypto industry. As long as the crypto industry persists, it is expected to remain one of the most reliable blue-chip coins.
While Pi Network faces major risks, it has more potential catalysts that may push its price higher in the long term.
First, as this BanklessTimes article noted, the coin has formed a falling wedge pattern, pointing to a potential rebound in the coming months. A surge to its all-time high would be a 350% jump from the current level. It would take longer for BTC to achieve a 350% increase.
Second, Pi Coin has potential catalysts that may push its price higher in the near term. For example, a simple exchange listing by an exchange like Upbit or Binance would trigger a substantial surge. Recently, Orca’s price soared by over 200% after being listed on Upbit.
Third, the Pi Network will likely burn billions of tokens in the next few months. Most of these tokens will be sourced from pioneers who failed to migrate them to the mainnet. News about its token burn would also be bullish.
Therefore, while Bitcoin is a solid investment, Pi Network might offer a better risk-reward ratio.
READ MORE: Pi Network Price Forms Rare Pattern: Will Pi Coin Surge 200% Soon?
