Each human brain contains an estimated 100 billion neurons. Each memory is a set of specific neurons firing in a specific sequence. That leaves a lot of options and pathways for forming memories. Then add on the fact that we are constantly pruning useless memories and strengthen useful ones and suddenly the capacity expands more because we are constantly optimizing the memories which are most important which frees up neurons to remember new things.
It is estimated that the human brain can remember 2.5 petabytes of data. that’s about 300 years of continuous 1080p video.
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