The recent surge in the value of bitcoin to over $38,000 has not only brought profits to investors, but also raised concerns about the cryptocurrency’s impact on the environment. A study published in Cell Reports Sustainability highlights the significant water consumption of bitcoin transactions, which averages 16,000 liters per transaction. This amount is equivalent to filling a backyard swimming pool and contributes to a staggering global total of over 1,600 gigaliters by 2021. The environmental impact is particularly troubling in water-scarce areas such as Central Asia and the United States.
Alex de Vries, a researcher studying the cryptocurrency’s footprint, predicts a more than 40% increase in water consumption if the trend continues, driven by the energy-intensive Proof of Work (PoW) mechanism that underpins bitcoin mining. This process requires significant computing power, resulting in the need for extensive cooling systems for data centers and power plants.
The reliance on renewable energy sources, often touted as a solution, is criticized by de Vries as insufficient to offset the environmental impact due to their limited availability. Instead, he points to the Proof of Stake (PoS) model, which Ethereum will transition to in 2022, as a more sustainable alternative. PoS reduces the need for energy-intensive hardware by allowing cryptocurrency holders to increase the likelihood of validating transactions, a move that has not diminished Ethereum’s popularity or functionality.
As the crypto community looks to the future, particularly around 2040 when bitcoin mining is expected to end with the mining of the last coin, de Vries warns that miners must move away from unsustainable practices. Without adapting their technology, they risk being caught in a losing game against environmental sustainability, a scenario that could have serious implications for the long-term viability of the industry.
