Most people will be curious, how much is the value of Pi in terms of cost, what is the value of one Pi?
Let's estimate as follows:
First of all
Assuming we estimate based on the current price and node rewards:
The current market price of Pi is about 1.5 USD.
Assuming the daily mining output of the node is 0.348 Pi (5 times the basic rate of 0.0696 Pi/day), the value is approximately 0.348 × 1.5 = daily income of 0.522 USD.
Running a Pi node requires a computer to stay online continuously. Assuming using a regular household computer (power consumption of 100W), with electricity costs calculated at the global average of 0.15 USD/kWh:
Daily power consumption: 100W × 24h = 2.4 kWh.
Daily electricity cost: 2.4 × 0.15 = 0.36 USD/day.
Net profit: 0.522 - 0.36 = daily surplus of 0.162 USD (approximately 0.108 Pi).
Currently, node rewards barely cover electricity costs with a slight profit, but the profit margin is extremely thin. If the price drops, the situation will deteriorate rapidly.
Calculate the shutdown price based on costs:
When the reward value equals the electricity cost,
That is, 0.348 × price = 0.36,
Price = 0.36 ÷ 0.348 ≈
"The cost price of one Pi is 1.03 USD."
Therefore, if the release of Pi leads to a further drop in price, the economics of nodes will be difficult to maintain.
Important question: If a large number of nodes shut down due to unprofitability, what impact will it have on the Pi network?
The consequences of no one running nodes:
The operation of Pi relies on nodes; if the number of nodes decreases significantly, it will trigger the following chain reactions:
1. Decreased transaction processing capability.
2. Network stability is compromised.
3. User confidence collapses.
4. Decentralization is hindered.
5. Ecological collapse.
Therefore, if the price drops and causes nodes to shut down completely, then Pi will collapse completely. Thus, before decentralization, the current reward distribution is still centrally managed, and mining coins will not be released. Otherwise, it will lead to a price drop that triggers project collapse.
Therefore, it can be predicted that the Pi team will inevitably have many significant changes; it is impossible to collapse before even starting. The conjectured executable method is to establish a cost consensus like BTC.
What is cost consensus?
In simple terms, it is the comprehensive large-scale dollar liquidity that supports the price, and the project team needs to do this completely 100%, not to find people to buy Pi, but to find sources of funds, building heavily on node cost prices.
Therefore, looking at it this way, if the price falls below the cost of 1.03, my view is that it can be bought in large quantities directly... (this is just my reasoning, not investment advice).
What other policies can the Pi team implement?
1. Reduce mining rewards to make Pi scarce, no longer released, or even stop mining early.
2. Implement a destruction plan (e.g., destroy the 30 billion Pi that have not been migrated) to reduce total supply.
3. Enhance demand, which is to open applications for merchants on March 14, launch practical applications, give Pi actual use, and increase market absorption capacity.
4. Attract external investment to increase trading volume and holding willingness.
5. Adjust the economic model to link node rewards with transaction fees, similar to Bitcoin, so that node earnings do not completely rely on new coin issuance.
Conclusion:
If inflation causes the price to drop to the shutdown price (for example, below 1.03 USD), it will trigger project collapse.
The current node reward approaching power costs has sounded the alarm. Before Pi is fully launched and decentralized, everything can be controlled through technical means to keep the price above the shutdown price.
In my view, this is an opportunity!