As far as security goes, the type of hash is not as important as selecting good passwords. Fully random noise is not as good as you might think.

Your script generates random passwords, and that's useful for the initial user password. However, they should be required to change it to something of their choice immediately for two reasons: (1) they won't remember something random you gave them without writing it down, and (2) you absolve some theoretical liability for breakins after they change it from your password to theirs.

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