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It can also be used in Finder, such as in the "Go To Folder" function among other places it is recognized.
 
Yup. the ~ symbol just represents your user directory (/Users/youruser/).

FYI, the other terminal prefix to commands you're likely to see is ./somedirectoy/ The period (.) in front simply means whatever directory you are currently in (super handy for when you're 6 directories deep and you don't want to spell out the whole thing).
 
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