I personally like to buy a good book read it and sign my name on the inside of the cover before I give it away to someone that will hopefully enjoy it also. I also hope that they do the same thing and pass on the book after writing their name inside.
Before the hate comments start rolling in I'm not saying that it is a bad thing to have a personal collection I'm just saying that a personal collection should just be a small one bookshelf of your favorite books anything more is unnessicary.
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I still have my little "library" i read on a kindle now because like you said i can fit 5000 books on my little 3" x 5" kindle and everything is cheaper
That being said i only buy paper backs or hard covers of my absolute favorite books and books id like to have a copy of because i think its cool