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Bilbo's Ring is in fact the One Ring created by the Dark Lord Sauron. It can help Bilbo by turning him invisible which can get him out of troubling situations, such as fleeing from Gollum and the Goblins in the Misty Mountains.

The Ring can hurt him by making him irritable, hostile, selfish to the point of only caring for the Ring, arrogant, and all around bringing out the worst in him.

However, these negative effects are hardly noticed in The Hobbit.

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Q: How does Bilbo's ring both help and hurt him?
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