You will have a limit on the maximum number of columns a table can have on any RDBMS. For example, it SQL Server 2008has a maximum of 1,024 columns for a non-network table and 30,000 columns for a wide table, Oraclehas a maximum of 1,000 columns (although I'm not sure if this restriction has been changed). Therefore, I recommend your first option, in fact, I would choose this even without column restrictions.
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