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Regardless of prevalence I don't understand how people put so much value in diamonds. As far as I know they're not heavily used for anything productive.

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Aren't diamonds heavily used to improve cutting tools? I know they are not worth as much in that context, but it's still a productive use case.

Exactly, I doubt they'd be worth much in that context.

diamond dust, not multi-karat stones.

"Conspicuous Consumption", a prior art to Proof of Work, a way to express how much money you can afford to burn.

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