by 
The Curious Bag
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<h4 class="dechead">On One Hand: Diamond Die Bits are Harder
A diamond die bit has a tip which has bort, industrial grade diamonds, attached to it. This forms an extremely hard cutting surface. Since diamonds are so hard, the bit is very durable and lasts for a long time. Diamond bits cut very well, but they are extremely expensive.
On the Other: Carbide Die Bits
A carbide is an inorganic compound made up of carbon mixed with another element such as tungsten or calcium. This forms a hard, durable material used in many industrial applications. It is commonly used in bits for a die grinder. It cuts as well as a diamond bit while it is sharp. It is much less expensive than a diamond bit.
Bottom Line
Both diamond and carbide bits are used in a die grinder. While carbide bits are much less expensive than diamond bits, they also last a much shorter time. In the long run you would find that diamond bits are cheaper per cut than carbide. Your final decision should be based on how much work you need to do. If you work professionally and cut many dies, the diamond is the better bit.
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