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Assuming you are trying for a predictive regression, that is. Compressing to 0/1 is throwing away information, plus it gives you many more opportunities to overfit as you will be tempted to choose the threshold to get a good result.
Only reasons for using dummy variables are (a) you have a categorical (unordered) variable that you need to encode (b) the feature is essentially two-class anyway (e.g. very bimodal distribution) and you don’t think the variations around the peaks add any information.
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