Just because it's .jpg, doesn't mean it's terrible for pixel art. Your avatar suffers from a resolution or file size problem -- possibly a rescaling problem. The format only controls the parameters, not the settings.
JPGs are the Comic Sans of image formats - a lot of people will tell you it's a horrible thing, but are not even sure why.
All my desktop wallpapers are in .JPG formats. Converting them from .GIF or .PNG, I could notice no difference - other than the much smaller file size, which is a nice thing to have.
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I looked at it and made a decision.
And that decision was this, because it's unique.