1) normally, you don't use the db to house a collection of images.
they are kept separately with a link in the db to them. a db with
images could be prohibitively too large for use on your device in
an app. there are other considerations (among which speed); you
should research them online for a better understanding.
2) the example doesn't "use" the .gif format. it
doesn't "use" any format; the image referenced happens
to be a .gif. the example simply copies the file byte by byte
into the db as a so-called "blob" type. (any kind of data can
be stored as a blob, but its handling depends on the
programmer's knowledge of what the blob represents.) the
example could have used a .jpg or .png. it merely showed
how you would store an image as a blob.
3) unless your collection is made up of smileys or animated
gifs, you don't want to convert your images to .gifs. you
will lose all color subtleties. (plus you'll need support for the
gif format in android.) the same holds for other formats
such as .tifs. (the .tif format is lossless,which means the files
are often very large and contain information relevant for file
editing not display, plus you'll have to have a way of displaying
them (you'll need a separate viewer app...).
4) if your image collection is already in the .jpg format, you don't
want to convert it to something else. .jpgs are "lossy"; every
time you open one to edit or convert it, you lose even more
detail. if you're looking to use a "better" format going forward, you
could consider .png.