because of @okenskeld asking me about if bilbo knew what the ring was doing to him---i have to post my response here for you guys to see my thoughts on it too!
just looking at that scene and seeing the anguish in bilbo's eyes the moment he realizes what he's done [to the small spider creature] and what the ring is ALREADY doing to him?? he knows for sure what's going on. but at the same time he has doubts in himself. without the ring he would have never have gotten out of the goblin tunnels, without the ring he wouldn't be where he is right then and there. without it he feels like he won't be any help to thorin or the company.
i can see him mulling it over MANY times on his walk through the mirkwood forest to rescue the company, on how bad this ring really is but the pro's always outweighed the cons because i can see the ring being the thing that plants the doubts in bilbo's mind without him realizing it. just imagining it whispering to him "without me you won't get far, you were moments away from being killed back in gollum's cave, without me you wouldn't have found your 'courage' blah blah blah."
so yes, he recognizes it, but the ring is a tricky thing and kinda manipulates him to keeping it













