1. Volatility: Bitcoin's price is notorious for extreme fluctuations, making it a highly volatile investment option.
2. Regulatory Uncertainty: As governments worldwide grapple with how to regulate cryptocurrencies, uncertainties about future policies may impact the value of Bitcoin.
3. Security Concerns: While the blockchain technology underlying Bitcoin boasts robust security measures, individual exchanges and wallets can be vulnerable to hacking or phishing attacks.
4. Lack of Tangible Value: Unlike physical assets or fiat currencies backed by governments, Bitcoin's value is derived solely from market demand, leading to concerns about its long-term stability.
2. Regulatory Uncertainty: As governments worldwide grapple with how to regulate cryptocurrencies, uncertainties about future policies may impact the value of Bitcoin.
3. Security Concerns: While the blockchain technology underlying Bitcoin boasts robust security measures, individual exchanges and wallets can be vulnerable to hacking or phishing attacks.
4. Lack of Tangible Value: Unlike physical assets or fiat currencies backed by governments, Bitcoin's value is derived solely from market demand, leading to concerns about its long-term stability.