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I would like to have the mysqldump compressed.

I tried both gzip and bzip2 and saw that bzip2 compresses it smaller compared to gzip.

But, in most of the places online, I see the examples using gzip

gzip and bzip2 - which one is better?

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This blog post compared the time to compress and compression ratio of gzip and bzip2 on a MySQL dump and found that bzip2 compressed better.

It all depends on file type and contents of the tables. Perhaps for your tables, bzip2 compresses better. It is probably a matter of personal preference and the prevalence of gzip.

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