Bitcoin, the world’s leading cryptocurrency, is facing scrutiny once again as new research sheds light on its rapidly expanding water footprint. According to a recent commentary by Alex de Vries, a doctoral candidate at the Vrije Universiteit Amsterdam, published in the peer-reviewed journal Cells Report Sustainability, bitcoin’s water consumption is on a concerning upward trajectory.
De Vries estimates that bitcoin’s water footprint is set to reach a staggering 591 billion gallons in 2023, marking a substantial 278% increase from 2020. The implications of such a surge in water usage are significant, especially when considering the escalating water scarcity concerns in regions like the western United States and Kazakhstan—both major hubs for crypto mining activities.
Understanding Bitcoin’s Water Footprint
Bitcoin mining operations, the process by which new bitcoin tokens are generated, heavily rely on energy-intensive computations carried out by computer servers. To manage the heat generated during these operations, water is used for cooling both the servers and accompanying air-conditioning systems. Additionally, water indirectly comes into play as it cools power plants supplying electricity to these mining operations. This dual usage not only leads to water loss through evaporation but also exerts pressure on groundwater supplies.
De Vries utilized data from Cambridge detailing large-scale bitcoin operations in the United States, comparing it with the water intensity of electric generation on specific grids. When factoring in both direct and indirect water usage, he notes that the total water footprint of US Bitcoin miners could be equivalent to the average annual water consumption of approximately 300,000 US households—a scale comparable to a city like Washington, DC.
Environmental Concerns and Potential Solutions
The environmental implications of bitcoin mining’s water consumption are clear, and De Vries suggests that miners should strategically position their operations in areas powered by renewable energy sources to mitigate their impact on water resources.
While this proposal holds promise, there is some uncertainty. The Cambridge data sample only represents 44% of the global total in bitcoin mining, leaving room for variations in the overall water footprint. A UN study from October 2022, relying on different data, reported a 255 billion-gallon water footprint for bitcoin mining in 2021—significantly lower than De Vries’ estimate of 415 billion for the same year.
Balancing Growth and Environmental Responsibility
As the cryptocurrency landscape evolves, the tension between the growth of digital assets like bitcoin and the environmental consequences of their mining practices becomes more apparent. Striking a balance between fostering innovation in the crypto space and ensuring responsible environmental practices remains a complex challenge. The ongoing discourse surrounding bitcoin’s water footprint emphasizes the need for sustainable solutions within the crypto industry to address environmental concerns and contribute to a more eco-friendly future.
