Since Phase IV of Project improve has been revealed, there are a few reasons why JPG's are inferior to PNG's: * JPG's have low quality * Thumbnails of JPG's look very very very bad * JPG's cannot be made transparent The are many great reasons to use PNG's over JPG's, which some are listed here: There's other great reasons to use PNG's, but the above reasons are the most important. An example of how great PNG's are compared to JPG's is right here with these two images (which one of them on the left is JPG and the one on the right is PNG):
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