What techniques does Smaug use to unnerve the hobbit?

Smaug uses a combination of psychological manipulation and intimidation to unnerve Bilbo Baggins. He employs flattery and cunning, addressing Bilbo by name and recognizing his presence, which creates a sense of vulnerability. Additionally, Smaug's ability to reveal details about Bilbo's past and his clever Wordplay instill fear, as The Hobbit realizes he is in the presence of a powerful and cunning adversary. This interplay of fear and intrigue effectively unsettles Bilbo throughout their encounter.