Bitcoin is a digital currency that, despite its intangible nature, has tangible environmental consequences. The activity surrounding its creation and maintenance involves substantial greenhouse gas emissions and, according to a recent study, a high demand for water as well. A scientific examination has highlighted water consumption as a critical dimension of Bitcoin’s footprint and notes that this demand is likely to grow as cryptocurrency usage expands.
The report, prepared by financial economist Alex de Vries and published in a scholarly journal, emphasizes that cryptocurrency mining consumes significant water resources. It presents the first comprehensive estimate of Bitcoin’s water usage and underscores the potential for rising consumption if the technology and its adoption scale without safeguards. The study stresses the importance of sustainability considerations as digital currency mining becomes more prevalent across markets.
The findings warn that ongoing use without restrictions could exacerbate water scarcity in regions already facing shortages, including in the United States. In places already experiencing drought, fresh water becomes increasingly scarce. The researcher notes that continuing to allocate this valuable resource to energy-intensive calculations may lead to painful realities for communities dependent on limited water supplies.
“There is drought in many parts of the world and fresh water remains an increasingly scarce resource. If this valuable resource is used to perform redundant calculations, the consequences will be severe,” remarks de Vries, who is affiliated with a Dutch research institution.
Bitcoin and other cryptocurrencies rely on water, a fact illustrated by visual documentation associated with the topic. Data show that mining activities require cooling for powerful computer equipment housed in large data centers, and cooling systems contribute to the overall water footprint.
Previous analyses of resource use in cryptocurrency mining focused largely on electricity consumption. Miners around the globe compete to solve mathematical problems that enable new Bitcoin units to be produced. On the Bitcoin network, the mining process handles an immense volume of transactions per second, an activity that consumes substantial computing power.
According to de Vries, the majority of data about mining outputs are the result of measurements and models that aim to estimate energy and water use rather than to capture every micro-detail of computing activity.
Plenty of water to cool computers
Alongside computing, large amounts of water are used to cool equipment in data centers. Estimates from prior studies suggest that Bitcoin mining in the United States alone consumes between 8.6 and 35.1 gigaliters of water per year, reflecting the scale of infrastructure needed to support such operations.
Cooling systems rely on water that is evaporated during the process, and some cooling approaches use steam-based methods. This evaporation adds to the total water footprint associated with Bitcoin’s electricity demand, particularly when electricity comes from power plants that themselves require cooling water.
In total, estimates indicate that Bitcoin mining used more than 1,600 gigaliters of water worldwide in 2021. Each transaction on the Bitcoin blockchain is associated with a substantial water draw, reflecting the energy-intensive nature of the process. Projections suggest that water consumption could rise further in subsequent years as mining activity grows.
Within the United States, annual water use for Bitcoin mining has been estimated at 93 to 120 gigaliters, equivalent to the water use of hundreds of thousands of households or a major city’s consumption in a single year. This widening footprint is connected to the expansion of mining activities in various regions, including those facing water stress.
A growing problem
Bitcoin’s price volatility has attracted considerable attention, and recent price gains have intensified concerns about environmental impact. Higher demand is closely tied to greater resource use, particularly when electricity and cooling require substantial inputs of water. Critics note that much of the energy devoted to cryptocurrency mining does not translate into broader societal advances and is concentrated in repetitive, non-beneficial calculations. The argument is that these outcomes do not always translate into practical innovations that improve life in meaningful ways.
There are places where the growth of mining intersects with regional water stress. In some Central Asian economies, where climates are dry and freshwater resources are already stretched, expanding mining activities could worsen shortages. For example, a major mining hub reported significant water use in 2021, underscoring the need for careful consideration of resource allocation in the face of rising digital currency activity.
Experts suggest several strategies to reduce the environmental and water-related impacts of mining. Adjusting mining software and shifting to energy sources that minimize water use, such as wind or solar power, can lessen the burden. However, the transition to renewable energy must balance competing demands for power across sectors, as the availability of clean energy sources can be limited in certain regions. The ongoing debate centers on whether the gains from powering crypto with renewables outweigh the opportunity costs in other sectors. The question remains open, with informed voices urging careful policy and industry choices.
These observations build on the body of work that analyzes the relationship between digital currency and natural resources. The reference study provides a foundation for ongoing discussion about how to manage the environmental costs associated with cryptocurrency mining, including its water demands and broader energy implications.
Additional materials and findings are available in the cited Cell Reports Sustainability publication. Researchers emphasize that future work should continue to monitor water use and to explore practical measures that can mitigate these impacts while supporting responsible innovation in the digital economy.