Bitcoin’s Water Footprint: A Closer Look at Global Mining Impacts

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Bitcoin is a digital currency whose environmental footprint reaches into the physical world. It contributes to greenhouse gas emissions and consumes substantial amounts of water, a concern highlighted by a recent scientific study.

A report by financial economist Alex de Vries, published in a leading sustainability journal, shows that cryptocurrency mining uses a significant volume of water and that demand is likely to grow as the use of digital currencies expands. This study provides the first comprehensive estimate of Bitcoin’s water use and its implications for global water resources.

The researchers warn that without scale limits or policy measures, escalating cryptocurrency activity could strain water systems, especially in regions already facing scarcity, including the United States. “There is drought in many parts of the world and fresh water is increasingly scarce”, says de Vries, a PhD candidate at the Free University of Amsterdam in the Netherlands.

Bitcoin and other cryptocurrencies rely on large cooling systems for the data centers that power mining operations. Earlier studies suggested high electricity consumption, but this report shifts the focus to water use. In the United States alone, de Vries estimates that Bitcoin mining consumes between 8.6 and 35.1 gigalitres of water annually. Cooling the machines and the energy plants that power them both require significant water resources, and some water also evaporates from hydroelectric plants, further increasing the overall water footprint.

Across the globe, de Vries estimates indicate that Bitcoin mining consumed more than 1,600 gigalitres of water in 2021. Each Bitcoin transaction is associated with about 16,000 liters of water, roughly the amount needed to fill a standard swimming pool. Projections suggest this figure could reach about 2,300 gigalitres in 2023. In the United States, annual water use from mining is estimated between 93 and 120 gigalitres, comparable to the annual consumption of hundreds of thousands of homes or a city such as Washington, D.C.

A Growing Water Challenge

Recent surges in Bitcoin price have raised concerns about environmental impact, since higher use translates into greater water and energy demands. Critics argue that the mining process requires vast computing power and substantial resources that do not contribute to productive outputs such as AI models. In their view, many computations are effectively wasteful.

Bitcoin price dynamics continue to influence mining activity. While the currency has seen sharp movements, the environmental stakes remain high. In regions like Central Asia, where dry conditions threaten freshwater supplies, expanding mining activity can amplify local water stress. In Kazakhstan, a major mining hub, substantial water use occurred in 2021 as part of mining operations. This country already faces water challenges, and the growing water footprint could worsen the situation.

De Vries suggests practical steps to reduce both energy and water use in mining. Transitioning to software optimizations and adopting renewable energy sources that rely less on water, such as wind and solar, could help. Yet the allocation of renewable capacity to crypto must be weighed against other critical uses of these resources. The researcher notes the uncertainty of how much renewable energy should be diverted and suggests careful consideration of tradeoffs.

Additional context and analysis can be found in the Cell Reports Sustainability study cited in the material from the research team. The work highlights the need for a balanced approach to technology adoption and natural resource management.

Further reading and data appear in the cited Cell Reports Sustainability publication. The environmental assessment remains a point of ongoing discussion among policymakers, researchers, and industry participants, who are evaluating how best to manage water and energy for digital currencies.

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