Bitcoin’s Biggest Risks: Regulation, Tech, and Trust
bitcoin faces major risks beyond price swings: uncertain regulation, potential technical flaws or attacks, and fragile trust in exchanges, developers, and the broader ecosystem.
Capitalizations Index – B ∞/21M
bitcoin faces major risks beyond price swings: uncertain regulation, potential technical flaws or attacks, and fragile trust in exchanges, developers, and the broader ecosystem.
bitcoin is usually taxable. Most countries treat it as property or an asset, not currency, so capital gains, income, and sometimes VAT or sales tax can apply.
bitcoin’s blockchain resists direct hacking, but users and services remain vulnerable-exchanges, wallets, and human error expose funds through phishing, software bugs, and private key theft.
bitcoin is dubbed ‘digital gold’ because its fixed 21 million supply, predictable issuance and decentralized validation create scarcity and store-of-value properties similar to gold, attracting long-term investors.
bitcoin carries risks: extreme price volatility, uncertain and changing regulation, technical vulnerabilities and operational failures, and permanent loss of access to private keys or wallets.
bitcoin is irretrievable if private keys are lost or funds are sent to the wrong address. Transactions are final on the blockchain – no central authority can reverse mistakes or recover lost keys.