Bitcoin Fixes This? Bitcoiners React to Collapse of Diamonds

According to data provided by Barchart, diamond prices have fallen to the lowest level this century.

Simon Gerovich, CEO of Metaplanet, believes that Bitcoin can fix this, pointing to its scarcity. “This is what happens with unlimited supply,” he said in a social media post.

According to a recent report by the South China Morning Post, declining demand in China might be one of the key reasons behind plunging diamond prices. Local factories are also producing synthetic alternatives that are drastically cheaper, which is why newlyweds do not necessarily opt for pricy diamonds from Tiffany.

The rapid rise of lab-grown diamonds, which are composed of the same material as naturally formed diamonds, has taken a signifncat toll on the industry.

Moreover, consumes are becoming increasingly concerns about the environmental impact of diamond mining. Consumers are now demanding more sourcing traceability.

Last month, McKinsey & Company, one of the leading management consulting firms, reported that the mining industry was at an inflection point.

Even though diamonds are often viewed as a commodity, they are not traded on exchanges like gold or oil. There is no market due to the lack of standardizaton within the industry since differen gems tend to vary when it comes to such characterists as carats or clarity. Moreover, the industry is considered to be an oligoplogy, with a handful of companies controlling the global supply of these gems.