You only need to work on one or a few projects at a time. The disk is like a library of books that you may need at some point but not all the time. When you open a program, its code and some data get loaded into RAM temporarily, and then unloaded as you finish working with it.
As the average amount of memory in computers grows, software developers start to make use of it less efficiently. They introduce abstraction layers and virtualization, which automatically load stuff into memory and keep it there without the programmer explicitly managing what is currently needed. So you inevitably have to add more RAM to use new software. But you’ll never have as much memory as the disk space on a personal computer.
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