Bitcoin mining not only uses a lot of energy, but it also uses a lot of water. A study shows that an average Bitcoin transaction uses as much water as a small backyard pool. Bitcoin mines are similar to data centers, which are also known for their high energy and water consumption.

The study shows that Bitcoin’s footprint continues to grow. According to The Verge, it’s a problem that could get even worse now that the cryptocurrency is recovering from a sharp decline. The research was carried out by Alex de Vries from the Vrije Universiteit in Amsterdam. In previous studies, his team examined the electricity consumption and greenhouse gas emissions of crypto coins. These studies ensured that the climate footprint of Bitcoin and Co. was examined more closely. However, their impact on water resources has remained under the radar.

Computing power requires energy

The question therefore arises as to whether Bitcoin and similar crypto coins can disrupt countries’ climate goals. Miners use high-tech computers to continually solve puzzles, validate transactions and collect Bitcoins in return. This abundance of computing power can only be achieved if sufficient energy is available. Just like regular data centers, crypto mines require tons of water as coolant to prevent machines from overheating.

“The numbers are astonishing, even if it is difficult to surprise me,” Alex de Vries told The Verge. In the study, de Vries mapped the direct and indirect water consumption of Bitcoin mines. He found that in 2021, at Bitcoin’s peak (over $65,000), crypto mining used about 1,600 gigalitres of water. This corresponds to the value of a small swimming pool (16,000 liters) per transaction. According to de Vries, that’s 6.2 million times more water than a credit card. After the plunge in 2022, when the price of Bitcoin collapsed, water consumption also fell. However, de Vries notes that the currency is recovering and the researcher even expects water consumption to increase to 2,300 gigalitres of water this year.

Solution in sight

De Vries’ figures are estimates based on the assumption that Bitcoin mines operate with water-dependent cooling systems. However, some data centers and crypto mines use other systems to cool computers, such as by immersing them in a non-conductive liquid. This naturally reduces water consumption. However, most mines are still cooled in traditional ways. Ethereum, the second largest cryptocurrency network, developed a way to dramatically reduce energy consumption last year.

“If Bitcoin did something similar, all electricity consumption and associated water consumption would disappear overnight,” says de Vries. “We can do it, but apparently people still prefer to claim that the network is not as bad as we think.” That is better than actually doing something about it,” the researcher concludes.