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I know almost nothing about servers but that sounds very capable. Why do they offer it for free? How many lemmy users do you think it can handle?
Free because you can roll into a paid service easily, it’s a trap really. But if you can stay within the free limits then it’s gold.
Lots of users. Depends on storage requirements, 200GB could be limiting if you want to host media.
F that, lots of free image hosts exist.