Bitcoin

• EU regulators unveil details of bank stress tests (FT)
• Just use NSAfari: U.S., UK advise avoiding Internet Explorer until bug fixed (Reuters)
• China’s Income Inequality Surpasses U.S., Posing Risk for Xi  (BBG)
• US races to refuel infrastructure fund as revenue dries up (FT)
• New Era Dawns at Nokia as Company Appoints CEO, Plans $1.4 Billion Special Dividend, Share-Repurchase Program (WSJ)
• Obama reassures allies, but doubts over 'pivot' to Asia persist (Reuters)
• Dissent at SEC over bank waivers (FT)
• U.S. Banks to Help Authorities with Tax Evasion Probe (WSJ)
• U.S., Europe Impose New Sanctions on Russia (WSJ)
• Why the U.S. Is Targeting the Business Empire of a Putin Ally (BBG)
• Euro-Area April Economic Confidence Unexpectedly Declines (BBG)
• Bitcoin traders settle class actions over failed Mt. Gox exchange (Reut

Bitcoin prices tumbled almost 15% as Chinese bitcoin exchange BTC China announced it has stopped accepting RMB deposits to user accounts from a major bank. As Coindesk reports, Management decided to proactively halt deposits from one of the country’s largest banks, China Merchants Bank, after the bank posted on its public website that it would no longer allow its customers to engage in bitcoin-related transactions, and said essentially it would require all such businesses to close their accounts. Withdrawals, of course, are allowed, but as Coindesk goes on to note, that while the PBOC's 'official' policy on Bitcoin has not changed since December, this 'pre-emptive' move may suggest he PBOC would soon set stricter rules about how its earlier edicts should be followed.

I got into a Twitter debate with Marc Andreesen of Netscape (the inventor of the commercial web browser) and Andreesen Horowitz (the VC fund that financed Facebook, Twitter, Skype & Zynga) fame.

He spit out what was mostly common sense, yet still flew in the face of what is taught in school, most text books and by most B school teachers. Here's how it went down...

1/A few common fallacies about valuation of public and private technology companies:

• Ukraine Says Russia Exporting ‘Terror’ Amid Eastern Push (BBG)
• Civil War Threat in Ukraine (Reuters)
• China Shoe Plant Strike Disrupts Output at Nike, Adidas Supplier (BBG)
• Mt Gox to liquidate (WSJ)
• Ex-Co-Op Bank Chairman Charged With Cocaine Possession (BBG)
• Goldman Sachs plans to jump-start stock-trading business (WSJ)
• Credit Suisse first-quarter profit falls as trading tumbles (Reuters)
• U.K. Unemployment Rate Falls to Five-Year Low (BBG)
• Lawmakers Back High-Frequency Trade Curbs in EU Markets Law (BBG)
• Yahoo's growth anemic as turnaround chugs along (Reuters)
• Spain ETF Grows as Rajoy Attracts Record U.S. Investments (BBG)

• Ukraine forces move against separatists (FT)
• China GDP Gauge Seen Showing Deeper Slowdown (BBG)
• China Is Losing Its Taste for Gold (WSJ)
• Regulators Weigh Curbs on Trading Fees (WSJ)
• Obama, Putin Talk as Unrest Roils Eastern Ukraine (WSJ)
• Japan PM talks with BOJ chief, does not push for easing (Reuters)
• BRICS countries to set up their own IMF (RBTH)
• IMF Members Weigh Options to Sidestep U.S. Congress on Overhaul (WSJ)
• Zebra to Buy Motorola Solutions Unit for $3.45 Billion (BBG)
• Chinese Thunder God Herb Works as Well as Pain Therapy (BBG)

As the bitcoin bubble bursts, the residual price momentum and "mining" bubbles remain only in those currencies where the "mining" of bitcoin is easier. This explains the shift from bitcoin to litecoin. In other words, where it is easier to create digital currencies out of thin air and where there is still a momentum-based surge in popularity. In yet other words - to permit a faster dilution of the existing currency pool.

After warning that hardware is dead, my thesis has foreshadowed the slashing of the equity values of Apple, Blackberry, Samsung, Nokia and HTC despite the fact that the sell side has said otherwise. Now I've enabled the whole world to profit on the premise

• Sensitive Market Data Leaked After Government Phone Call (WSJ)
• This is a actual Bloomberg headline: China Fake Data to Skew More Export Numbers (BBG)
• This is another actual BBG headline: U.S. as Global Growth Engine Putt-Putts Instead of Purring (BBG)
• Ukraine wants to buy European gas to boost energy security (Reuters)
• JPMorgan Profit Falls 19% on Trading, Mortgage Declines (BBG)
• Record Europe Dividends Keep $2.8 Trillion From Factories (BBG)
• Why is Goldman shutting down Sigma X: SEC eyes test that may lead to shift away from 'dark pools' (Reuters)
• Ebola Outbreak Empties Hotels as West Africa Borders Closed (BBG)
• Australian PM says searchers confident of position of MH370's black boxes (Reuters)
• Gross Says El-Erian Should Explain Reason for Exit (BBG)

It's not Bitcoin, it's the underlying technology

Dr Faber discussed the importance of not owning gold stored in the U.S., the mystery of the Fed gold, why Singapore is safest for gold storage, the risks of bitcoin and how small countries should revert to national currencies. The must watch interview can be watched here ...

• Russia says expects answers on NATO troops in eastern Europe (Reuters)
• Dealers say GM customer anxiety rising, sales may take hit (Reuters)
• China Unveils Mini-Stimulus Measure (WSJ)
• Londoners Priced Out of Housing Blame Foreigners (BBG)
• New earthquake in Chile prompts tsunami alerts (Reuters)
• Ukrainian Billionaire Charged by U.S. With Bribe Scheme (BBG)
• Chinese Investments in U.S. Commercial Real Estate Surges (BBG)
• Old Math Casts Doubt on Accuracy of Oil Reserve Estimates (BBG)
• US secretly created 'Cuban Twitter' to stir unrest (AP)

Jim Rickards said that gold should remain an essential part of diversified portfolios and Mark Faber pointed out that the question should be “how could you NOT own gold?” Faber has said that he favors owning gold in fully allocated gold accounts in Singapore and Switzerland. 

• Why did Yellen use criminals in her employment case studies? Hilsenrath explainz (Hilsenrath)
• GM avoided defective switch redesign in 2005 to save a dollar each (Reuters)
• Xuzhou Zhongsen Said to Avert Bond Default on Guarantor Aid  (BBG)
• France's New Finance Minister Faces Fiscal Challenge (WSJ)
• The magic is gone: Draghi’s Attempt to Talk Down Euro Lost on Traders (BBG)
• Another John Kerry smashing success: U.S. Gambit on Mideast Peace Talks Falters (WSJ)
• Combat-Ready China Military Seen as Xi’s Goal in Graft Battle (BBG)
• Huge earthquake off Chile's north coast triggers tsunami (Reuters)
• Pressure rises on Gross as investors pull $3.1 billion from Pimco's flagship fund (Reuters)

• Crimea Resolution Backed by U.S. Barely Gets UN Majority (BBG)
• Russian Buildup Stokes Worries (WSJ)
• As reported here first: China’s Developers Face Shakeout as Easy Money Ends (BBG)
• U.S. House Poised to Clear Sanctions Called Putin Warning (BBG)
• Bitcoin Prices Plunge on Report PBOC Orders Accounts Shut (BBG)
• Search for lost Malaysian jet shifts significantly after new lead (Reuters)
• Russian fund taps China and Middle East (FT)
• Long battle looms between U.S. college, athletes seeking to unionize (Reuters)
• Official warns EU-US trade deal at risk over investor cases (FT)
• New iPhone likely out in September, Nikkei daily says (AFP)

$20 billion yesterday for a "virtual" reality corporation... but it gets better, as Property Guru reports, Singapore-based game developer Planet Arkadia is offering investments in what is believed to be the world’s first million dollar virtual property. It offers the 'investor' a chance to participate (by spending real money) in the "vibrantly growing economy of Planet Arkadia" - which we note is entirely virtual. Top, much?