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Wouldn't have to be free, I guess. I'd certainly be willing to pay for it. I already pay Wistia for Fort Galt's video hosting and it would be awesome to be able to move to a steemit-integrated alternative for the same price.

yes, and bloggers who earn rewards can afford to pay for it, so in that sense, if it's not free hosting then yes.. it's very possible, but paid hosting would be centralized and may not last forever, or as long as youtube could last

Why not look at integrating with a crypto powered distributed storage platform like Sia?