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Formatting is a software issue primarily. I'm pretty sure that todays hardware supports most of the different formats whether for mac, linux or windows, but I think 16 bit has been deprecated long ago. FAT stands for "File Allocation Table" and is just one of the many formatting standards that tell the computer when to end one data bit and start another. While you might want to use FAT for backward compatibility, keep in mind that FAT has an upper limit on the size of a single file of 4 GB (if memory serves). ExFAT can surpass that, but so can NTFS and other formatting standards.
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