Hobbits are short in stature, generally around three and a half to four feet tall, which is why they are also known as Halflings. They are a simple, earthy people, who farm and live in expansive caves that they call Holes. They also enjoy conversation, a good cup of ale, smoking pipe weed and frequent meals and snacks. They have lived for years in The Shire mostly ignored by Big People. Only Dwarves on their way to the White Mountains and Elves on their way to the Grey Havens pass through The Shire and even they take little interest in the Halfling. Gandalf, a Wizard, has however taken an interest in Hobbits and periodically visits The Shire.
Hobbits turn out to be very important to all of Middle Earth in that Bilbo Baggins had been a Ringbearer for years and his nephew Frodo Baggins bears the burden of the One Ring all the way to Mt. Doom in Mordor. The destruction of the Ring leads to Sauron's downfall and defeat.
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