The Bathtub Curve

The economics of long-term data storage are critically dependent not just upon the Kryder rate, the rate at which the technology improves cost per byte, but also upon the reliability of the media over time. You want to replace media because they are no longer economic, not because they are no longer reliable despite still being economic.

Source

For more than a decade Backblaze has been providing an important public service by publishing data on the reliability of their hard drives, and more recently their SSDs. Below the fold I comment on this month's post from their Drive Stats Team, Are Hard Drives Getting Better? Let’s Revisit the Bathtub Curve.

Wikipedia defines the Bathtub Curve as a common concept in reliability engineering:

The 'bathtub' refers to the shape of a line that curves up at both ends, similar in shape to a bathtub. The bathtub curve has 3 regions:

1. The first region has a decreasing failure rate due to early failures.
2. The middle region is a constant failure rate due to random failures.
3. The last region is an increasing failure rate due to wear-out failures.

Depreciation

Source

More than three years ago, based on Paul Butler's The problem with bitcoin miners, I wrote Generally Accepted Accounting Principles. The TL;DR was that the economic life of Bitcoin mining rigs was estimated at 16 months, as Moore's law in a competitive ASIC market rapidly generated more power-efficient rigs. But the Bitcoin miners' accounts were using 5-year straight-line depreciation for their rigs, which was significantly increasing their nominal profits.

Below the fold I look at the same problem unfolding in the heart of the AI bubble.

The Gaslit Asset Class

James Grant invited me to address the annual conference of Grant's Interest Rate Observer. This was an intimidating prospect, the previous year's conference featured billionaires Scott Bessent and Bill Ackman. As usual, below the fold is the text of my talk, with the slides, links to the sources, and additional material in footnotes. Yellow background indicates textual slides.

Hard Disk Unexpectedly Not Dead

As I read Zak Killian's Expect HDD, SSD shortages as AI rewrites the rules of storage hierarchy — multiple companies announce price hikes, too I realized I had forgotten to write this year's version of my annual post on the Library of Congress' Desihning Storage Architectures meeting, which was back in March. So below the fold I discuss a few of the DSA talks, Killian's more recent post, and yet another development in DNA storage. The TL;DR is that the long-predicted death of hard disks is continuing to fail to materialize, and so is the equally long-predicted death of tape.

Luke 15:7

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The title of the post refers to the King James Version of the Bible:

I say unto you, that likewise joy shall be in heaven over one sinner that repenteth, more than over ninety and nine just persons, which need no repentance.

Luke 15:7

In the throes of 2008's Global Financial Crisis Satoshi Nakamoto published Bitcoin: A Peer-to-Peer Electronic Cash System. It inspired a large group of enthusiastic advocates who asserted that Bitcoin would possess the following attributes:

• It would be decentralized.
• It would be trustless.
• It would be censorship resistant.
• It would be securely encrypted.
• Users would be anonymous.
• Users could transact without intermediaries.
• Users could transact cheaply.

In short, it would enable users to escape the clutches of the TradFi (traditional finance) system that had so obviously failed. It has been obvious for many years that it doesn't, and in July there appeared a truly excellent mea culpa from a former advocate, Peter Ryan's Money by Vile Means. Below the fold I comment on it, and a couple of other posts describing how TradFi has obliterated Nakamoto's vision.

2025 Optical Media Durability Update

Seven years ago I posted Optical Media Durability and discovered:

Surprisingly, I'm getting good data from CD-Rs more than 14 years old, and from DVD-Rs nearly 12 years old. Your mileage may vary.

Here are the subsequent annual updates:

• 2019
• 2020
• 2021
• 2022
• 2023
• 2024

It is time once again for the mind-numbing process of feeding 45 disks through the readers to verify their checksums, and yet again this year every single MD5 was successfully verified. Below the fold, the details.

The Drugs Are Taking Hold

cyclonebill CC-BY-SA

In The Selling Of AI I compared the market strategy behind the AI bubble to the drug-dealer's algorithm, "the first one's free". As the drugs take hold of an addict, three things happen:

• Their price rises.
• The addict needs bigger doses for the same effect.
• Their deleterious effects kick in.

As expected, this what is happening to AI. Follow me below the fold for the details.