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Bitcoin is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Bitcoin is not backed nor supported by any government or central bank. Bitcoin’s price is completely derived by market forces of supply and demand, and it is more volatile than traditional currencies and financial assets.
Investing in bitcoin comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, bitcoin markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing.