Luxury investing is forever changing.

The allure of traditional luxury goods like diamonds is waning, and a new competitor has emerged, challenging long-held perceptions of value and investment.

Once a symbol of luxury and a symbol of enduring love, diamonds are facing an existential crisis as lab-grown alternatives gain popularity. Meanwhile, bitcoin, a digital currency once viewed with skepticism, is gaining momentum as a viable investment option. This shift in preferences will have a major impact on the luxury goods and investment markets.

Diamond prices are collapsing.

For decades, Diamonds was considered one of the world's most powerful and successful industrial cartels, dominated by South Africa's Debris Consolidated Mines. This company controlled more than 90% of the world diamond market for the 20th century.

However, this monopoly has begun to crumble in the 21st century. The rise of lab-grown diamonds poses a major threat to traditional diamond producers.

Interest in lab-grown diamonds has boosted the diamond industry. They offer the same beauty and physical properties as natural diamonds at a fraction of the cost. Consumers are drawn to these options because of their affordability and environmental and ethical benefits.

This shift is evident at retail locations like Macy's, where lab-grown diamonds are gaining popularity over their natural counterparts.

“To most people, a diamond is a diamond, and what they want is the brilliant sparkle and beauty and meaning that you can put into a diamond,” said Mary Carmen Gasco-Buyson, Pandora's chief marketing officer.

Lab-grown diamonds, once called “synthetic,” have been transformed by the Gemological Institute of America, reflecting their authenticity as luxury goods. The Federal Trade Commission's recognition of these products as real diamonds has made them more legal, which has led to an increase in international sales.

“Laboratory grown diamonds have the same chemical, optical and physical properties and crystal structure as natural diamonds. Like natural diamonds, they are made of tightly bonded carbon atoms. They react to light in the same way and are just as hard as natural diamonds. The main difference between laboratory and natural diamonds is their origin,” says the Gemological Institute of America.

For example, in 2022 alone, sales of lab-grown diamonds will reach $12 billion, a 38 percent increase over last year.

The decline in the diamond market, exacerbated by global inflation and consumer preferences, has broader implications for investment strategies. While traditional luxury goods have lost their appeal, investors are turning to alternative assets such as bitcoin.

Bitcoin (BTC) reaches 1 million dollars

Bitcoin's growth as an investment option has been as dramatic as the fall of diamonds. Once a popular digital currency, Bitcoin has attracted the attention of institutional and individual investors. Its limited supply and decentralized nature make it a hedge against inflation and market volatility.

Bitcoin's potential is highlighted by the pending approval of a Bitcoin ETF (exchange-traded fund), which could unleash massive capital inflows into the cryptocurrency.

“i don't think so. [the current] A procession is a very special procession. This is an ant parade. When is the actual parade? [Bitcoin goes] About 1 million dollars, and the place is then [Bitcoin] EFAs have been approved, and we have tens of billions, maybe hundreds of dollars flowing into Bitcoin in a short period of time,” said JAN3 CEO Samson Mou.

Similarly, Raoul Pal, CEO of Real Vision, predicted a parabolic rise in the price of Bitcoin. This bullish outlook is based on supply and demand dynamics, macroeconomic trends and Bitcoin's acceptance as a legitimate asset class.

“These cycles can be crazy and this feels a lot more like the 2017 cycle than the last cycle. And, that cycle didn't have a lot of central bankers printing … central banks' balance sheets. [are now] took off . We've seen 20% growth and what happened to Liquidity, crypto absolutely exploded. I feel like that's the case now,” Pal said.

Read More: BTC Price Prediction 2024: What Will Happen After Bitcoin ETFs Are Approved?

Bitcoin's parallel rise and diamond's decline reflect a broader shift in societal values ​​and investment strategies. While diamonds represent a static form of luxury, Bitcoin offers dynamic growth potential. This change is not about choosing one over the other, but about understanding what is value and wealth in the modern world.