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I’ve wondered if extremely dense storage like this would give rise to a new “tape trading” or bootleg culture - if you could export Spotify’s entire catalog or every movie made so far to a single storage tape and duplicate it all, what would that be like?

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I believe the main bottleneck for that would be finding seeders for a collection that large, not a lack of storage.

In that case why would it need to be online at all? If it's not too big just share the physical media..

Seriously: just buy a station wagon ;)

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