The Recycle bin holds files that you delete, in case you need to get them back. It only holds a limited amount, so even if you never empty it, you won't end up with a hard drive full of old, deleted files.
By the way, if you would like to restore a deleted file, just double-click the recycle bin and right-click the file you would like to restore. A small menu will materialize and give you a restore option.
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