Diamond ore is only found on the bottom 16 layers of the map
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The most useful tool would have to be diamond pickaxe.
Diamond
Foxes are not in minecraft.
A minecraft diamond seed is a seed in which you can find diamonds very easily. There used to be a seed (1million) that generated big mountains, and if you dug down from where you spawned you'd find a diamond cave. Most diamond seeds are fake, but others can be real.
Yes, most likely.