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Your friend is correct for fresh water ice floating in freshwater, but that isn't the case for ice on the earth.Ice at the North Pole is floating, but that is freshwater ice (mostly + dust etc) floating in seawater. If you do the sums you will find that for freshwater ice in a saltwater tank, when it melts the water level would rise slightly. The other thing to consider is that a lot of the earth's ice is not floating eg, Greenland, Antarctica, Canada, Siberia so that would directly contribute to a sea level rise.