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I think it's bad. My cousin's daughter is 9 and has had an account since she was 8. Another cousin has an 11 year old who has one as well. They are going to see images they shouldnt be seeing, no doubt about that. It also seems like a waste of time. Sitting there staring at instagram when there's so many other things they could be doing.
I also imagine it must not be great for self esteem. Some people/kids are better looking than others. Heck I sometimes feel bad about myself when I see really good looking people on instagram and I'm 42.