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I think its crappy programs to blame not the jpg format. I currently use two programs that can compress an image into 30kb without many noticeable artifacts but in the past I?ve used programs that compressed images down to 40kb and it looked like someone corrupted the image the artifacts were so awful.
Jpeg is a lot like MP3, there are certain programs that compress to 128kbps and you can hear noticeable sound artifacts whereas the high-end encoders that take much, much longer to encode files can get away with almost none.
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