Not everyone shares the same view, but Bitcoin (CRYPTO: BTC) continues to prove that it is a superior asset. As of the time of writing this in the early afternoon of April 29, the oldest and most valuable cryptocurrency in the world has risen by 3% in 2025. This figure may not seem like much, but it is still better than the 6% drop in the S&P 500 index.
Zoom out, and you might have to pick your jaw up from the floor. Over the past five and ten years, Bitcoin has surged by 1,000% and 40,210%, respectively. This remains a high-performing asset that certainly remains on everyone's radar after approximately 16 years of existence.
But no matter how optimistic you are about Bitcoin, it doesn't matter. This cryptocurrency certainly has many risks to consider. Here are five things you need to know if you intend to buy it in May.
1. Government intervention
The biggest risk for Bitcoin may be a country's government making ownership and mining illegal. This happened in China in 2021.
There are concerns that the same will happen in the United States, especially since Bitcoin is a direct competitor to the current monetary system run by the Federal Reserve. The printing of money and allowing the US dollar to become the global reserve currency is a strong position that no one wants to give up.
However, the current White House administration is not shy about voicing support for cryptocurrencies. Favorable regulations are being implemented. And the United States has just announced plans to establish a Strategic Bitcoin Reserve Fund, emphasizing the importance of owning this scarce asset.
This does not necessarily mean that everything is set in stone. The next president could reverse these decisions.
2. Quantum computers
Quantum computers can solve complex problems much faster than the machines we have today. If this technology develops into better functionality, then Bitcoin's public key cryptography, which secures the network, could be compromised.
If quantum computers advance to that level, there could also be issues in other areas. Perhaps sensitive data of individuals, small businesses, and multinational corporations stored by financial institutions could be compromised. Even highly classified government intelligence could potentially be revealed.
Bitcoin has 359 full-time developers working to support the network. I have no doubt they continue to consider the potential impact that quantum computing may bring and are seeking solutions to make Bitcoin even safer in the future.
3. Software bugs
Ethereum receives a lot of attention because it is a functional blockchain that allows the development of decentralized applications. However, the problem is that its product roadmap is extremely complex. While this may seem intriguing, there is a risk that updates could introduce software bugs that may cause disruptions to the blockchain.
Bitcoin stands out because its code is very simple; some even call it boring. This is entirely by design.
However, upgrades have been implemented in the past, possibly to increase block size or improve privacy. And if developers choose to release a fix in the future, there could be technical issues.
4. Scalability of Bitcoin
The Bitcoin network can handle just under six transactions per second (TPS). This number pales in comparison to the processing capability of Visa's network, which can handle 65,000 TPS. If the digital currency wants to process larger volumes over time, the scalability issue needs to be addressed.
The Lightning Network is a Layer 2 scaling solution being researched to address this issue. But its ultimate success is not guaranteed. There is a possibility that the leading cryptocurrency may never be able to scale to facilitate faster and cheaper transactions.
Block CEO Jack Dorsey believes that if Bitcoin is not used as a payment method, it will become irrelevant over time. And for him, that would be a failure.
5. Ongoing volatility
Bitcoin's historical performance has been truly remarkable, but it has been a very bumpy road. There have been periods of extreme volatility. In fact, the price has seen many drops of over 50%.
If volatility does not continue to decrease, some individual and institutional investors may never feel comfortable buying it. This will certainly leave a lot of capital unused, which could affect the price appreciation potential of the digital asset. Understanding these five key risks will help investors gain more insight into Bitcoin.
