Quoting JamesMoriarty123,
I've only played a few games so far, but my last one was a 3 player FFA with all settings normal, Pirates Active. After about 2 hours or so me and one of the AI's were trying to out-Bounty each other every time the Pirate Riad counter reached zero, it was a SERIOUS drain on my resources, not to mention the fact that the Pirates seem to field quite large fleets compared to what I was able to produce!
It might just be my inexperience but it seemed to me that the longer the game went on the more rediculously difficult it would be to stop Pirates killing you, maintaining a higher bounty than the one on your head AND actively engaging an enemy.
Maybe if the game could make it so the Pirates were more of a nuisance than a total threat to your Empire. By that I mean a nuisance thats easy to clean up but if left unchecked WILL cause you serious troubles.
What version of the game do you have? The pirate vary a bit between versions so we can give more specific advice if we know what it is.
The pirates certainly can get quite powerful in Diplomacy, which is why many player play with them off, and that's the standard option for online play as well. Especially while you are still learning the game its no dishonor to do the same.
For the first few pirate raids, its probably better not to put up bounty. A capitalship and some frigates support by some repair bay or an unupgraded starbase can take out a pirate raid easily, so its only a matter of predicting which planet the raid will attack. They can also be a good source of capitalship exp.
With the most recent version of Diplomacy, the pirates are a non-issue in large FFA games because the AI will now bid against each other, which makes it rather unlikely they will bid up against you. Also the pirate raids now somewhat correspond with the amount of bounty offered, so even late game 500 credits of bounty will spawn far fewer ships than 5000, another reason why its often better to stay out of bounty wars.
Also FYI, unless you like long epic games, fast or faster settings are used by most players (I personally only exclude diplomacy rate), and quick start is also the norm for almost everyone.