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Wednesday, July 1, 2009

Digital Economy Zero: Free Stuff!

[Chris Anderson, editor of Wired Magazine] believes the digital world is leading the way in successful business and will continue to reduce their prices until they reach zero.

"In the 20th century it was pretty much a trick, there's no such thing as a free lunch and you get what you paid for.

"In the 21st century it's based on the underlying economics of digital stuff, which is Moore's Law," he added.

Moore's Law describes the long-term trend in the history of computing, where the power and capacity of a computer improves every two years, in turn bringing the cost down.

"Everything online gets cheaper by 50% every year; that's a deflationary economy.

"Moore's Law is more than 50 years old and now that it is online, the storage and bandwidth equivalent which are even faster, are making it even more deflationary.

"That's why zero is the ultimate price because the costs are falling to zero as well," he added.

link: BBC NEWS | Technology | The future is free


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