Peter Schiff, a stock broker and one of Bit coin skeptics said in “Bit Coin Debate” held in New York this month:
“If a token is backed up by Gold, it will be the only token that can succeed.”
He explains his point by comparing bit coin (BTC) with gold: Bit coin is backed up with nothing but only “self-confidence” without any evidence. In contrast, gold has been trusted for many years.
However, there may be something backed up by token which is better than gold. “King of jewels” is a diamond. However, here diamonds are not natural diamonds. It should be noted that it is “lab-grown diamonds” made in the laboratory.
“Why do you buy stocks? Because it is backed up by the business, right? Most of token itself is not backed up with anything. It is supposed to have some Token backed up with function. The problem is in what case would you want to exchange for it? Only if it is given value. We exchange for it not only because it has functions, since there might be some cases that the function is not necessary”.
This is said by Mr. Hideyuki Abe, Representative Director of Pure Diamond Laboratory Co., Ltd. The most effective way to support the value of the token is neither gold, silver, nor natural diamond, it is lab-grown (growing in laboratory) diamond. The reason is that the tracking ability (traceability) of the block chain is best demonstrated.
It might be rare in Japan yet, but in fact it is a laboratory grown diamond that is gradually spreading in the United States and elsewhere. Natural diamonds are born by the natural crystallization of carbon at the center of the mantle deep under the ground, but the laboratory grown diamonds are shortened processes. In other words, only the growth process is different. So, it is physically and chemically totally same as a natural diamond. Moreover, although it is said that only 2% is pure among natural diamonds, Lab-Grown Diamond specializes in that 2%. In addition, it is possible to produce color diamonds of very rare variety and color diamonds which do not exist in nature.
GIA (Gemological Institute of America) which is a worldwide appraiser of jewelry also publishes a laboratory grow diamond expert opinion (right side)
The market for laboratory grown diamonds is expanding rapidly, and Morgan Stanley announces a report that Lab Grown Diamond will dig into the traditional natural diamond market. De Beers, the world’s leading diamond trading company, also announced that they will begin dealing with laboratory grown diamonds.
Mr. Abe’s attention is not just the magnificence of the lab-grown diamond itself. It is a chemical reaction with the block chain. “We have also applied for a patent called “Pure Diamond Block Chain”. Mr. Abe explains its superiority compared to gold, silver, natural diamond as follows.
First, diamonds are a gem that anyone in the world admits. It is well-known that orders of diamonds followed by platinum and then gold are made without unreasonable promotion.
Also, unlike gold and silver, diamond cannot be melted and change its shape. This is an important factor in utilizing the tracking ability of the block chain. Lab-grown diamonds can track information such as birth date, birth place, appraisal data and cut data on the block chain. There is no same diamond as any one, it is the one and the only of each diamond. That’s why it’s compatible with block chains. We cannot realize traceability on something which the shape is changeable.
On the other hand, what is the compatibility between natural diamond and block chain? Mr. Abe said, of course, track data on natural diamonds with a block chain is possible. However, it is extremely difficult to keep track of the date of birth since it comes from natural.
“Digging date is different with date of birth…”
Furthermore, it is almost impossible for natural diamonds to identify the place of origin after passing through various vendors until they reach the hands of customers.
Only when this unique existence of birthdays and birthplaces are recorded on block chain, so as the added value of laboratory grown diamonds can be confirmed. It is a feature that cannot be achieved with gold, silver, natural diamonds.
“People do not usually want diamonds except when engaged or married. Do you want to see diamonds so cute after you came home? But you know the information on diamond’s birthday and the place of birth? What if we could learn all the processes about how this diamond is reaching here after passing through what kind of people? “
Mr. Abe said that the diamond industry is experiencing similar situations as consumers not only taste foods but also care about the localities and farmers. On the other hand, boycotts against natural diamonds, are taking place in part due to environmental destruction and child’s overworking problems.
In addition, Mr. Abe is considering not only the information such as date of birth, but also data of fortune-telling such as financial and love luck as data on the block chain of the lab-grown diamond. That makes it more and more unique.
Mr. Abe said that if a token backed up by “Lab Grown Diamond” made in this way could be issued, a market completely different from the existing diamond market and also the token market could be born. In addition to being able to make the value transparent on the block chain, we anticipate the price will become stable unlike the existing token market.
“When a natural disaster such as an earthquake or heavy rain happens, you do not have time to take a computer or passbook out, but you can go out with the diamond attached to your ring as it is. If it is Lab-grown diamonds backed by block chain, it can be used as a backing up for assets “
Ultimately Mr. Abe is also aiming to construct a new settlement market using tokens backed by laboratory grown diamonds
Mr. Abe met Lab-Grown Diamond was only a few months ago. Since then, he kept asking himself whether diamonds can be grown or not? Currently, token without backing up is “like walking with bare feet.” However, diamonds may become “clogs” worn by tokens. Moreover, the process in the laboratory that generated by electricity from nothing to exist is mining itself. It is said that token is actually born here, it seems to have come to think that it is a “reality version of a block chain”.
Whether Pure Diamond Lab Ltd. will be able to deliver a new style to the block chain industry with lab-grown diamonds will keep drawing attention in the future.