Legal Disclaimer

Bitcoin is one of the most successful cryptocurrencies, but like other altcoins, Bitcoin has also seen the price drops for the past few months. Though volatility remains one of the most significant risks of the cryptocurrencies, there are serious security concerns, too, like the safety of the wallets, growing vulnerability to the attackers of the hackers on the exchange, etc. 

Here are a few of the top risks related to Bitcoin:

1. Vulnerable Wallets – Bitcoin wallets are vulnerable when it comes to hacking and theft. There are few weak spots even in the hardware wallets which can be exploited. This security breach affects Bitcoin users’ privacy as their funds can easily be transferred to different accounts. 
2. Cyber-attacks – There is a risk of cyber-attacks at Bitcoin exchanges. There have been significant attacks on the exchanges in the past, and the price of Bitcoin has slumped afterward. There is also a risk of Distributed Denial of Service (DDoS) attacks. The frequency of DDoS attacks has increased with Bitfinex, which is one of the largest exchanges.
3. Mining – Proof-of-work mechanism has another underlying threat for Bitcoin. Some mining pools are becoming very powerful to control mining ratios. They may get involved in selfish mining. A pool may use all their computational power to mine a block, & then they hide it from the honest miners. Selfish miners then get all the rewards of mining the Bitcoin.