Technology Is Deflationary
Technology is deflationarybut that does not mean every investment tied to technology wins.
Every generation of computing has reduced the cost of a unit of work. The result is not less activity. Cheaper cycles invite more cycles, new applications, and a larger total bill. That is the economic logic behind Jevons’ paradox, and it is why demand can keep rising even as hardware becomes more efficient.
For investors, the question is where the expanding bill lands. The scarce inputs are often physical: reliable power, grid connections, transmission, cooling, land, and the equipment that turns electricity into useful compute. A falling cost per calculation can therefore coexist with rising spending on the infrastructure around it.
The durable thesis is not simply “technology gets cheaper. It is that falling prices broaden adoption and move value toward the bottlenecks that cannot be scaled overnight. Track the bottleneck, the cash flow, and the capacity to serve the next wave of demand.
