Bitcoin Mining and Water Use: Debunking Environmental Impact Myths

More interesting headlines and fear, uncertainty and doubt (FUD) emerged this week about Bitcoin mining power and water use. New research and mainstream media reports that BTC transactions are causing a global water shortage.

According to the BBC, new research by Alex de Vries of VU Amsterdam claims that each bitcoin transaction “uses enough water to fill a backyard swimming pool.”

Bitcoin's water usage under the spotlight

The outlandish claim comes from a hypothetical calculation of the amount of water needed to cool BTC miners around the world.

The report and crypto critic De Vries pointed out that Bitcoin mining has contributed to global water scarcity. By 2021, Bitcoin will have consumed nearly 1,600 billion liters of water, called gigalitres. According to the study, it may consume up to 2,200 billion liters by 2023.

So, in addition to Bitcoin causing a climate crisis, as Senator Elizabeth Warren believes, it will now cause everyone to die of thirst.

The reports are misleading as it is waterproof when used for industrial refrigeration. Additionally, Bitcoin mining operations often use hydroelectric power and recycled water.

Moreover, with innovations such as water cooling farms and the use of waste gas flaring, Bitcoin mining is becoming more sustainable.

Read more: Simplifying Bitcoin White Paper: A Comprehensive Guide

In fact, things are improving rapidly on the Bitcoin power consumption front from an environmental perspective.

According to a study by Cornell University, wind and solar projects can benefit from Bitcoin mining in the pre-commercial development stages.

Scientists say that establishing mining operations will reduce the environmental impact of cryptocurrency. Additionally, it can provide income that can be reinvested in future renewable energy projects.

Bitcoin mining is better for the power grid

Another research paper used case studies to determine whether Bitcoin miners could be useful for power grids.

The paper, written by a former president of Texas Grid and industry experts, described bitcoin mining as a “crucial tool” for clean energy and grid balancing.

The research suggests that mining outages and rapid load response capabilities can enhance power grid flexibility. This allows the grid to better integrate flexible renewable energy sources and load balancing.

It was also recently reported that Bitcoin's clean energy use was over 50%.

So it's not all doom and gloom. And no, Bitcoin is not on the fast track to destroy the planet. But those with an agenda push them.