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Does tar -x Extract to Current Directory or Does it Extract to the Source of the Archive?

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http://unix.stackexchange.com – Does tar -x by default just extract to the current directory or does it try to reproduce the original directory structure including overwriting the original source? I know I can specify a folder to extract to by using -C directory/ but I am asking about it's default behavior. So if I used tar -cvpjf ~/backup.tar.bz2 / to make a backup of my root directory and I then extract the backup.tar.bz2 (assuming I had root privileges) from within my home directory would it recreate / in my home directory or would it actually try to overwrite /? (HowTos)