Both. Use imgur or whatever service you like to actually share so you don't have to worry about bandwidth and hosting. Just also keep a local copy of everything, doesn't need to be a beefy server. Just don't let a 3rd party online service be the only copy.
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Ooh, I like this answer. If they pull it, you still have it. Can always post again.
Wasn't it that Imgur will allow only registered and verified accounts to post in the future?
If the traffic plan allows it: self-hosting images is the way.
Yeah, I guess when it comes down to it, if you want 100% control you have to pay for it yourself.
I do both, at least in the context of linking say screenshots to others.
If I'm linking a very "casual" or non important screenshot then I'll just toss it up on my server and link that copy.
If it were somewhat important, then I'll upload it to my server and imgur and link the imgur copy, just in case my server goes down - doesn't stop imgur from deleting it either but if I get hit by a train and am made unavailable then imgur is probably the best bet.
If it is critically important then I try to avoid screenshots / pictures all together and just describe it in text because that has the best chance of persisting. And if the text disappears, then at that point the image is probably not as useful either.