So why, then, would it be better to work with a 16-bit image? One word - flexibility. When you're editing an image in Photoshop, sooner or later, if you continue making edits, you're going to run into problems. The most common problem is what's known as "banding", where you've lost so much detail in the image that Photoshop can no longer display smooth transitions from one color to the next. Instead, you get an ugly stair-stepping effect between colors and tonal values.
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