Here Are Bitcoin's 5 Biggest Risks That Investors Can't Ignore
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By Neil Patel – Jan 31, 2026 at 11:00AM ESTKey PointsEven one of the best-performing assets has convincing bear arguments that investors must know.Regulatory threats, like heavy government taxation, are a persistent threat if Bitcoin really challenges the current monetary system.Bitcoin's cryptographic setup might be vulnerable if there are rapid advancements in quantum computing. CRYPTO: BTCBitcoinMarket Cap$1.6TToday's Changeangle-down(-4.50%) $3691.01Current Price$78262.00Price as of January 31, 2026 at 1:29 PM ETThe strongest bulls take the time to learn the opposite point of view.Investing in new technologies, like Bitcoin (BTC 4.50%), introduces a huge amount of risk and uncertainty. But betting on this cryptocurrency has clearly worked out well, with the price up an unbelievable 21,810% in the past 10 years (as of Jan. 26). It's still a smart idea to understand the bear case. If you're a current or prospective Bitcoin "HODLer," here are the five biggest risks you can't afford to ignore. Even after knowing them, I remain bullish on the digital asset. Image source: Getty Images. 1. Regulatory While this risk seems mitigated since the U.S. is fully embracing Bitcoin, stringent government actions, like heavily taxing Bitcoin transactions, can make it less appealing of an asset to own. And regulators, who support traditional banking entities, could make it difficult for crypto-only exchanges and financial institutions to obtain certain licenses to operate, for instance. In the future, new politicians who have an objection to Bitcoin and view it as a tool for criminal activity might start passing laws making it illegal to own. 2. Environmental Bitcoin's energy use is always a hot topic, given that mining transactions require huge amounts of electricity. While there are arguments that this proof-of-work system is actually necessary to maintain the network's security and that it promotes investments in clean energy infrastructure, Bitcoin is an easy target for those who support a move away from the use of fossil fuels. 3.Technological Quantum computing (QC) has been a more pressing concern recently. If there were powerful enough QC capabilities, it could be easy to obtain Bitcoin holders' private keys from their public keys. This would undermine any trust the network has. It's up to the Bitcoin community to be ahead of the curve and figure out solutions that can protect the blockchain's security should QC evolve rapidly. ExpandCRYPTO: BTCBitcoinToday's Change(-4.50%) $-3691.01Current Price$78262.00Key Data PointsMarket Cap$1.6TDay's Range$78222.00 - $84368.0052wk Range$74604.47 - $126079.89Volume68B 4. Economic The allure of owning Bitcoin is that it's an extremely scarce asset, since it has a hard cap of 21 million units. This makes it an attractive store of value, in theory, whose price should go up as more demand comes on board. However, this narrative could shift unpredictably. The fact that gold has risen by 50% in the past 12 months, while Bitcoin's price is down 17% during that same time, shows that the latter might still be viewed as too risky for traditional investment portfolios. 5. Sociocultural The final risk is that people simply just don't care for the advantages Bitcoin provides. Bitcoin transactions are final, unlike credit card payments that can be charged back. Bitcoin self-custody requires overcoming a technical learning curve, something that might not be for everyone. Bitcoin exists as a solution to the marriage between money and state, as it separates the two. If citizens in countries around the world once again start to believe that governments and central bankers are doing what's in the best interest of the people, then it takes a shot at Bitcoin's most important supporting argument.Read NextJan 31, 2026 •By Neil PatelBetter Investment to Make in 2026 and Beyond: Bitcoin vs. iShares Bitcoin TrustJan 30, 2026 •By Anders BylundShould You Buy Bitcoin While It's Under $90,000?Jan 30, 2026 •By Alex CarchidiThe Bitcoin Sell-Off Is Getting Worse, but That Won't Stop Me From Buying Even MoreJan 30, 2026 •By Alex CarchidiIs Bitcoin Still "Digital Gold"?Jan 30, 2026 •By Dominic BasultoBetter Crypto Buy: Bitcoin vs. EthereumJan 30, 2026 •By Dominic BasultoThe Best Cryptocurrency to Buy With $500 Right NowAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedBitcoinCRYPTO: BTC$78262.00 (0.05%) $3691.01*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.