It actually is providing an image, you just cannot see it
because of contrast. The light you have in the picture is
flooding the room with enough ambient light that the image that
is actually formed has no contrast. - Pinhole camera image
quality heavily depends on the pinhole size. However, the
smaller the pinhole, the "dimmer" the image will be, this is the
problem that you have. - In order to be able to view the image
you will need to make the pinhole basically in a box. The box
could be an entire room (e.g. cover all windows in a room with
aluminum foil so it is very dark, then prick a pinhole in the
foil on one of the windows) or a smaller box with a "viewing
screen." The key think is that whatever "box" that you use needs
to be relatively dark inside. A viewing screen can be something
clear but diffuse, like parchment paper or privacy glass. Even
with the viewing screen, you need to somehow make it dark enough
so that your eyes can see it. You could also make an enclosure
large enough for you head to fi