gwern comments on Supply, demand, and technological progress: how might the future unfold? Should we believe in runaway exponential growth? - Less Wrong
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If you can have a 1TB USB flash drive, then presumably you can have a 1TB internal drive which will store all of your files. (As indeed I have at this moment; well worth the ~$550.)
Yes, but that doesn't change the fact that looking at the usefulness of a 1TB USB flash drive is not a useful way to look at incentives to develop better storage media.