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I believe he is hinting at inflation damaging the value of cash in the next 5 to 10.

I would be very interested in the fallacy you see, yet I see none.

Servers lose 90% of their value in 5 years. Cash will not.

Readers from Argentina and Zimbabwe might disagree.

2 things.

1. Police are taking at least 20% hit right off the top. so, sure $1000 turns into $750 at 5%, the police are going to be looking at $600 profit, at the very best. a $1000 computer would be more like $100 dollars after five years, in which the police keep $80 bucks.

2. You can pirate all the copyrighted material you want in Argentina and Zimbabwe. Furthermore, neither of those countries really care about property rights. if the government wants your stuff, they just take it anyway.

Yes, but the data on the server may still be valuable (e.g. to an identity thief).