Does this mean that the video is not actually on the blockchain Steemit? I admit I'm a novice; please let me know about this. From what I understand, this form of linking is just linking to a different non-blockchain website (YouTube), and so if the video is taken down from YouTube, it's gone from Steemit. Would that not be correct?
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Yea I too would like to know this info
I'd say so. All that is being shared is the link, not the actual video file itself. If you want a video not be dependent on external platforms like Youtube, you'll most likely need to upload to Dtube.
is that so different to most other platforms?
Only FB and Insta (now owned by FB) really allow videos to be uploaded to their own platforms because they're so massive and have put a LOT of work into it. Early on you couldn't post videos to Insta at all, then when they introduced it, initially it was only 15sec.
Steem is still in its very very early days not to mention it IS still in beta - I wouldn't worry too much about whether or not you have to post videos to Youtube and have it embedded here.