5 Risks to Know Before Buying Bitcoin in May

Not everyone shares the same opinion, but Bitcoin (CRYPTO: BTC) continues to prove that it is a superior asset. As of the time of writing this article in the early afternoon of April 29, the oldest and most valuable cryptocurrency in the world has risen 3% in 2025. This number may not seem much, but it is still better than the 6% fall of the S&P 500 index. Zoom out, and you might have to pick your jaw up off the floor. Over the past five and ten years, Bitcoin has skyrocketed by 1,000% and 40,210%, respectively. It remains the highest-performing asset that is definitely on everyone's radar after about 16 years of existence. But no matter how optimistic you are about Bitcoin, it doesn't matter. This cryptocurrency certainly has many risks to be aware of. Here are five things you need to know if you plan to buy it in May.

1. Government intervention The biggest risk of Bitcoin could be that a country's government makes ownership and mining illegal. This happened in China in 2021. There are concerns that a similar situation will occur in the United States, especially since Bitcoin is a direct competitor to the current monetary system operated 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 does not hesitate to voice its support for cryptocurrency. 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 clear. The next president may reverse these decisions.
2. Quantum computer Quantum computers can solve complex problems much faster than the machines we have today. If this technology develops into better functionality, the public key cryptography of Bitcoin, which helps secure the network, could be compromised. If quantum computers advance to that level, there may also be issues in other areas. Perhaps the sensitive data of individuals, small businesses, and multinational corporations stored by financial institutions could be compromised. Even the highly classified intelligence information of the government could be disclosed. Bitcoin has 359 full-time developers working to support the network. I have no doubt that they are still thinking about the potential impact that quantum computing could bring and are looking for solutions to make Bitcoin even safer in the future.
3. Software Error Ethereum has received a lot of attention because it is a functional blockchain that allows for the development of decentralized applications. However, the issue is that its product roadmap is extremely complex. Although this may seem interesting, there is a risk that updates will introduce software bugs that could cause issues for the blockchain. Bitcoin stands out because its code is very simple, some people even call it boring. This is entirely due to the design. However, upgrades have been implemented in the past, possibly to increase block size or to improve privacy. And if developers choose to release a patch in the future, there may be technical issues.
4. The scalability of Bitcoin The Bitcoin network can process just under six transactions per second (TPS). This number is nothing compared to the processing capacity of 65,000 TPS of the Visa network. If digital currency wants to handle larger volumes over time, then the scalability issue needs to be addressed. The Lightning Network is a Layer 2 scaling solution being researched to address this issue. However, its ultimate success is not guaranteed. There is a possibility that the leading cryptocurrency will never be able to scale for faster and cheaper transactions. CEO of Block Jack Dorsey believes that if Bitcoin is not used as a payment method, it will become irrelevant over time. And for him, this would be a failure.
5. Continuous fluctuations The historical performance of Bitcoin has been truly spectacular, 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 the volatility does not continue to fall, then 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 main risks will help investors gain more knowledge about Bitcoin.