[Interview] Crypto business in Kazakhstan

[zasad@]

Do you want to continue the interview about Crypto business in Kazakhstan? Apytioh is active on the forum and I may invite him for a third interview.
If you have any questions you would like answered, you can write here or DM me. Apytioh is a very open person and honestly answers all questions.
Such an interview requires a lot of time for me and the opponent, but I don’t see much interest in such content.

I regret that your important topic did not receive the required attention, despite all the efforts and the long time you invested in it.
Honestly this is the first time I see the topic, so I read the first interviews that I did with Apytioh, the interview is really interesting and I learned a lot of new things for me especially about mining in Kazakhstan.
Apytioh mentioned something in the second interview that I didn't fully understand the point:

But according to my observations, I will say the following, when the current payback period is less than 6 months, it means that these periods are more likely to increase soon, you run the risk of entering the market when demand starts to fall. And when the current payback period is more than 1.5 years, then most likely, after a short time, everything will change in your favor.
Warren Buffett's rule of thumb: "Be afraid when everyone is greedy, and be greedy when everyone is afraid."
Thus, I have developed for myself the following pattern, the more unprofitable the start of mining in terms of payback period, the better this entry point, and vice versa. "

Could you ask him to explain this point in more detail, because I haven't quite touched the point. Specifically the last sentence.

Thank you and much appreciation for your kind efforts.

I have read Apytioh's posts.
Apytioh believes that it is necessary to invest in mining when the payback period is long and the equipment is cheap. When the payback period is short, the price is already approaching ATH.
Apytioh plans to make money on mining when the price of the coin rises and the payback period for equipment can decrease from 5 years to 5 months. CHIA price to rise from $40 to $400.
Anyone will probably ask why then not buy a coin for 40 dollars now?
Buying hardware mining is risk diversification. The project may close, but it will still have its mining hardware.

[yhiaali3]

I have read Apytioh's posts.
Apytioh believes that it is necessary to invest in mining when the payback period is long and the equipment is cheap. When the payback period is short, the price is already approaching ATH.
Apytioh plans to make money on mining when the price of the coin rises and the payback period for equipment can decrease from 5 years to 5 months. CHIA price to rise from $40 to $400.
Anyone will probably ask why then not buy a coin for 40 dollars now?
Buying hardware mining is risk diversification. The project may close, but it will still have its mining hardware.

Yes, thank you,
So here's the point. When the payback period is long and the equipment is cheap the price of the coin can achieve ATH over such a long period. This first point is good.

As for the second point, "risk diversification", I have to ask: If the mining project stops or the coin mining becomes unprofitable, what can be gained from the mining hardware? I mean, if coin mining becomes unprofitable, would someone buy these devices?

[zasad@]

I have read Apytioh's posts.
Apytioh believes that it is necessary to invest in mining when the payback period is long and the equipment is cheap. When the payback period is short, the price is already approaching ATH.
Apytioh plans to make money on mining when the price of the coin rises and the payback period for equipment can decrease from 5 years to 5 months. CHIA price to rise from $40 to $400.
Anyone will probably ask why then not buy a coin for 40 dollars now?
Buying hardware mining is risk diversification. The project may close, but it will still have its mining hardware.

Yes, thank you,
So here's the point. When the payback period is long and the equipment is cheap the price of the coin can achieve ATH over such a long period. This first point is good.

As for the second point, "risk diversification", I have to ask: If the mining project stops or the coin mining becomes unprofitable, what can be gained from the mining hardware? I mean, if coin mining becomes unprofitable, would someone buy these devices?

Apytioh said:
"The farm consists of almost 600 hard drives. The main part is 10TB drives, there is also a small amount of 8TB, and the total capacity is over 5500TB."
I will write only my opinion, I will ask Apytioh this question, and I will write a translation.
600 hard drives is a commodity that has a price. I think that losses are inevitable if the project fails, but if you buy coins, then you can lose all investments, and if you buy hard drives, then you will lose only part of the money, or maybe use them in another project.

[Apytioh]

Hi guys!

About XCH coins farming I can say that current price will never payback your investments.
1000 TB can farm approximately 10 coins per month, if you are owning big farm 5000 TB
you need some place for rent, good internet and electricity costs, for summer period you need A/C
So I can say that 50 coins farmed every month for the farm 5000 TB you will spend minimum 20-30%.
You can accumulate maximum only 40 coins per month.
This year you can farm 500 coins and then will be the reward halving.
Next three years you will be able to farm only 250 coins each year, I don't count total space changes, let's count it will stay on 22-23 EiB.
So for the next 4 years we can accumulate total 1250 XCH and then new halving and probably some of your drives will suffer after 4 years of hard work.
1250 XCH is only 55000$ and you will get payback only 30-40% of your investments.
That is why I'm saying that Chia farming payback period at this time (price, total space) is NEVER!

But if you want to earn money you can erase your farming plots and sell your space.
As I know this business can make x3 in 3 years, I mean 50k USD invested in Data Center can bring you 150K in just 3 years.
Although big Data Centers are continuing Chia farming, I can see a lot of farms 50 PiB+ only on Space Poll Leadership board and
I know that there are a lot of huge farms working solo not in the pools.
Are they idiots or they can't count money?