Image files like jpeg, jpg, png, bitmap etc. are made of limited pixels with limited resolution which get broken and blurry when they are enlarged or zoomed in. On the contrary, vector files; however, are based on mathematical terms with no resolution fixed. Hence, vector files can be enlarged to any size without compromising its quality.
Raster images have their uses. But, the pixel density of raster images needs to be checked for specific application for suitability. For example, images for the web have low PPI requirements (72ppi) which look very nice on the web but, low pixel such as 72ppi may not be suitable for printing and packaging purpose.