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It was a cheap way to add a sound barrier to a home without the need to insulate. The many angles the popcorn creates deflects sound waves. They used to make it with asbestos so it served a purpose in fire prevention also. They didn't realize at the time it would cause cancer. The final advantage was the labor savings in finishing the ceiling, they could paint and apply the finish plaster coat in one application. It's all about cost.

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