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well IPFS is alright I think ecency uses that too Imgur is centralized pretty sure so that's not ideal, the only thing that I think can be an issue is added congestion if people store images on hive

I think congestion is the reason for not storing images (and video) on the blockchain itself. Aside from space, there is the coding/decoding of the images. Even if people knew to use your technique, they may not have the patience.