01/12/2023
Ms Doris Yin's Message to Everyone
TOPIC #14: WHO WILL BUY PI FROM US AT $314,159 WHEN OM?
Some pioneers are questioning why anyone would want to pay $314,159 to pioneers when they could simply mine Pi themselves. They argue that this is a reason why Pi cannot be worth $314,159.
Pi is intended to be used as a currency for payment, not for exchange to FIAT. If Pi is successfully adopted WITH price some pioneers insist such as $31.4 or $314, based on the current mining speed of basic Pi, which is 6.48, and assuming more active pioneers and miners will join, the speed of mining will slow down. Let's say it takes a month to mine one Pi, which makes it 12 Pi in a year. If the price is $31.4, then you will only earn $376.80 a year, or maybe even lower to $37.68, which is equivalent to one hour of work. Do you think Pi can still attract more miners to be a dispersed character of currency?
It's important to understand that businesses and institutions will buy Pi from us when we reach OM phase because they need our blockchain. In order to become a user on our blockchain, they will need to pledge at least 10,000 or 100,000 Pi if the price is only $31.4 or $314. However, based on the current mining speed of 12 Pi a year, businesses will need to mine for 83 to 833 years to acquire 10,000 to 100,000 Pi. This is not practical, so it's more likely that they will purchase Pi from us instead.
If Pi reaches a stable GCV price $314,159 when OM, businesses will not feel that it is expensive to purchase Pi because one Pi will have the purchasing power of $314,159. At this point, it will be like they are simply shifting money from their left pocket to their right pocket. When the price of Pi is GCV $314,159, businesses will only need to pledge 10 Pi or 100 Pi, rather than 10,000 or 100,000 Pi. But even 10 Pi, business will buy instead of mine for one year. Because the timing for business is very important.
Now let's look at international trade numbers. I quote my last year in June Twitter Conference speech as following:
According to BIS data from the Bank for International Settlements 2 days ago, the average daily transaction volume of the international foreign exchange market is 6-11 trillion U.S. dollars.
👉If one Pi is worth 1,000 U.S. dollars, 6-11 billion Pi are needed.
👉If one Pi is 10,000 U.S. dollars, 0.6-1.1 billion Pi is needed.
👉If the price is 100,000 US dollars, 60-110 million Pi is needed.
👉If the price is 314,159 US dollars, 19,098,609 to 35,014,117 Pi is needed.
Right now we only have 850 million Pi available to use. Therefore, the starting barter price of Pi needs to be increased to at least US$314,159 per Pi. And this is the most reasonable price for international settlement.
Now let's look at the numbers from Chinese trade:
According to customs statistics in 2023, China's total import and export value of goods trade in the first quarter of 2023 was 9.89 trillion yuan, a year-on-year increase of 4.8%. Among them, exports were 5.65 trillion yuan, a year-on-year increase of 8.4%; imports were 4.24 trillion yuan, a year-on-year increase of 0.2%. So the total US dollar is 1.3846 trillion US dollars.
👉 If the price of the Pi is $100, then 13.846 billion Pi are needed. So we have currently migrated 2.45 billion Pi locks and 1.6 billion, and only 0.85 billion are available. Even if a large number of subsequent migrations are carried out, this number will not be reached within 3 years, and this is only the first quarter of China's data.
👉Pi is supposed to carry the function of an international settlement currency, which obviously cannot be achieved by 100 US dollars. So can GCV satisfy it? We can see that 44,073 Pi are needed. If calculated based on China's annual requirements, it is estimated that about 200,000 Pi will be needed. 233 countries need 40 million Pi for trade alone. If calculated according to some small countries, divided by 4 times, there is still a demand of 10 million Pi.
👉These do not include individual peer-to-peer transactions. Because Pi wants to be a stable currency, the starting point must be high to lay a solid foundation for stability in the hundreds years.
Global trade and financial transactions involve a significant amount of money and need a lot of Pi which include but not limited to Internal trade plus global peer-to-peer transfer and settlement demand. And that's why we need GCV $314,159!
Please don't waste time arguing about prices or GCV. If you want to make quick purchases like a house, car, vacation, or take care of your family and parents, then support GCV!🙏🙏🙏
Doris Yin 🪷🪷🪷
