Cryptocurrency mining, especially Bitcoin and Ethereum, has always been at the center of controversy due to the energy and resource consumption required to mine the currency. However, a recent new report revealed that approximately 16 thousand tons of water is used for each Bitcoin transaction. It is stated that this radical water consumption may cause fresh water shortages.Cryptocurrencies could create freshwater shortages
It is also stated that the computational process behind the Bitcoin network uses between 8.6 and 35.1 billion liters of water per year in the United States, or roughly a swimming pool’s worth of water per transaction. The study includes both direct and indirect water footprints, both of which come from freshwater sources. These data centers consume water to humidify the air for the maintenance of cooling systems and servers.
It is stated that as of March 2023 in the USA, there is a total annual consumption of between 93.5 and 120 Gigalitres, equivalent to the average water consumption of approximately 300,000 households. Meanwhile, most Bitcoin mining takes place in Texas, whose consumption is 53.1 to 68.4 GL of fresh water. Additionally, these consumptions are calculated based on large-scale Bitcoin operations. To put into perspective the size of consumption, one gigalitre (GL) is equivalent to 1,000,000,000 liters.
The studies also shed light on the bitcoin mining operation in Kazakhstan, which could face a significant freshwater shortage of 997.9 GL by 2030. This is due to China banning Bitcoin operations and as a result, many mining operations have shifted here, making the country the largest hub for Bitcoin mining.Although all of this is worrying, there are practical solutions. Many pragmatic solutions can be implemented quickly, such as cooling servers with dielectric liquid instead of cooling them with water. Indirect water consumption can also be reduced if power plants switch to water-free sources such as wind, solar and thermoelectric energy generators using dry cooling systems.
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