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Effectively storing multiple text files

Step 1: use 7z. The compression is far superior compared to other archivers, because the compression dictionary is reused between files. Compressing one file with 7z and compareing to e.g. gzip will show similar results. Compressing two similar files with 7z as opposed to gzip, will show dramatic differences in compression ratio between 7z and gzip and others.
7z a -r archive.7z ./directory-to-compress/

Step 2: Use archivemount, it even supports write access for the mounted directory!
archivemount archive.7z /mnt/test

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