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Using removeable media instead of an external drives has some advantages. It's portable and easily shared, so you can go on for as long as you keep buying fresh media to record data onto, and you can play your homemade music CDs in the car or play DVDs for kids in the back seat. But as of this point, storage per media is pretty limited compared to the almost infinite capacity of pure digital storage. CD-ROMs can hold less than 1MB, while DVD-ROMS can hold up to 8GB. And the process or writing information to the disc can be time consuming.
Bottom line: CD-ROMS and DVD-ROMS have their uses, especially for storing and playing music or movies or for information back-ups. But they're not going to do much to increase your storage capacity overall.