Volatility of prices. Bitcoin's value has increased significantly over the years, but the fortunes of buyers have varied depending on the time at which they invested. If you bought bitcoin in 2017 when it was nearing $20,000, you would have to wait until December 2020 to recoup your losses. Further, despite the fact that 2021 has been a successful year for bitcoin, its value dropped half between April and July before rebounding and reaching new highs in November.

Use is limited (but increasing). AT&T joined the ranks of companies accepting bitcoin payments in May 2019, joining Overstock.com, Microsoft, and Dish Network. However, they are the exception rather than the rule.

SIPC does not offer protection. Investing in bitcoin is not covered by the Securities Investor Protection Corporation, which insures investors up to $500,000 if their brokerage collapses or their assets are stolen.