I don't agree with the comparison between diamonds and bitcoin. The supply of diamonds is constrained (just like the supply of many luxury goods) and that ends up making a physical product (a diamond ring or jewelry or even a Porsche (yep supply is constrained on that beyond what the market would buy)) more highly sought and valuable. But in the end you are getting a physical product which you can lust over and others can admire when they see you own it. The same does not exist with bitcoin. This is not even to mention that both diamonds and Porsches have actual use even if that use can be supplied by less expensive alternatives. Even Gold has this advantage. These are not tulip mania products that got bid up either and they have generally maintained and stood the test of time with regards to both their value and their utility. (Even if the utility of a diamond ring is what the person wearing it gets in good feeling).
