How many passwords are you going to store? Does half space really mean a lot to you?
You probably represent the hexadecimal passwords in your application, so storing them in binary format adds another level of complexity and processing overhead when performing any operations on these passwords.
My opinion is that you should store them in such a way that it is convenient for you to work, and not one that saves you a small amount of space.
Edit:
Let's go make some assumptions and take the opportunity to help you a little further.
Since your passwords are in hexadecimal, I assume you are not using crypt , and if you are not, you should be. In the worst case scenario, you use md5 ... and god kills the kittens.
There are many questions and answers about bcrypt on stack overflow already, so I will not cover the information again here.
The SHA512 question against Blowfish and Bcrypt is a good place to start.
Also read some @ircmaxell posts in this thread:
Leigh
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