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Until very recently there were serious problems with putting LVM under any sort of concurrent load. Making more than a few snapshots at the same time, for instance, was asking for trouble. I say "was" - I've got no idea if these problems were fixed. You just don't have those problems with file-based images.

Yeah but you can't snapshot a file based image, so lvm without snapshots is just as good (and much faster).

ZFS and btrfs both let you do this, as do qemu COW images.

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