What are the major internal and external conflicts of The Hobbit?

The external conflicts of The Hobbit are central to the story as an adventure with a dramatic plot line. The central conflict is that of the dwarves and Bilbo versus Smaug the dragon, but many secondary antagonists are encountered along the way, including spiders, trolls, goblins, Gollum, wargs, and even the weather. These conflicts are struggles not only to succeed in obtaining an objective but often struggles for survival.
The internal conflicts make the story more interesting than simply a colorful adventure. Bilbo loves both the romance of adventure and the comforts of home, and he struggles to see himself as heroic and to convince the dwarves that he is, in fact, a capable thief. Before convincing others of his skills, he first must convince himself of his abilities, and he struggles to develop self-confidence. There is also an element of moral struggle, in which Bilbo has to make a choice about doing what is easiest and doing what is right in ransoming the Arkenstone.