Despite the negative press Bitcoin received due to the Silk Road black market scandal, industry observers believed that there would be a renewed investor interest in digital currency.

Payment processing company Dwolla told its customers through an email statement it would no longer accept Bitcoin currency starting the end of this month.

According to a Reuters report, the value of bitcoins had decreased following the arrest of Silk Road, an underground website allegedly selling illegal products and services.

The Federal Bureau of Investigation had shutdown Silk Road, an alleged online bitcoin marketplace used to perform illegal activities, said a Reuters report.

According to a Reuters report, venture capitalists showed no signs of shying away from startup investments related to Bitcoin even as authorities increased scrutiny among numerous virtual currency firms.

On Thursday, stock exchange SecondMarket launched the first virtual money investment fund in the United States.

Bloomberg Businessweek reported that the Bitcoin frenzy had reached China. Bloomberg Businesswee reported that the Bitcoin frenzy had gripped China. The world's second largest economy had become the second largest maker of Bitcoins worldwide, according to data compiled by SourceForge.

Bitcoin Foundation joins U.S. regulators in FinCEN-hosted discussion regarding digital currency. Financial Crimes Enforcement Network (FinCEN) director Jennifer Shasky-Calvery hosted a discussion with members of the Bitcoin Foundation.

Purchase of apps using Amazon coins saw a 50% weekly boost in revenues. The USD5 worth of Amazon coins was a gift well spent by Kindle Fire consumers. This in turn was an excellent money-generating move for both Amazon and app developers, according to tech evangelist Peter Heinrich.

Owning Bitcoin could become illegal if governments outlawed the digital currency due to unusual risks and decentralization.