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16
Diamonds spawn on Layers 16 and below.
In order for a powered rail to work, you need a redstone torch placed right next to it. This torch will power 16 rails in each direction. Keep this in mind while placing them.
Diamonds can be found below level 16.
Based on my calculation as of this very moment, on 16 May, Mojang has earned 209,693,752 Pounds. Whew. Over 200 million bucks from Minecraft.