Risk Factors for BTC
- !Price volatility remains extreme — 50%+ drawdowns are historically common
- !Quantum computing advances could eventually threaten SHA-256 and ECDSA signature security
- !Mining centralization: top 3 mining pools often control over 50% of hash rate
- !Energy consumption draws regulatory and ESG-related criticism globally
- !Bitcoin Script has limited programmability compared to Ethereum — slower feature development
- !Block size cap (1-4MB with SegWit) limits base layer throughput to ~7 TPS
Risk Mitigation Tips
- +Diversify: never hold 100% of your portfolio in BTC alone
- +Use hardware wallets (Ledger, Trezor) for self-custody of large holdings
- +Follow Bitcoin development via https://bitcoin.org and community channels
- +Set stop-loss alerts and position size according to your risk tolerance
- +Only invest what you can afford to lose — crypto is highly volatile