What is INLINE linking? is it bad or good?

Inline linking (also known as hotlinking, leeching, piggy-backing, direct linking, offsite image grabs) is the use of a linked object, often an image, from one site into a web page belonging to a second site. The second site is said to have an inline link to the site where the object is located.

there has been a lot discussion over the net about whether inline linking is bad or good.

Some said inline linking is bad for SEO

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