A new study by Alex de Vries, a historical critic of Bitcoin, suggests that each transaction consumes the equivalent of a full garden swimming pool of water.
The new paper by Alex de Vries from Vrije Universiteit Amsterdam suggests that each Bitcoin transaction, on average, uses an amount of water equivalent to filling a garden swimming pool. The calculation highlights water consumption around six million times higher than that used in a typical credit card withdrawal.
According to the study published in Cell Reports Sustainability, the main reason for Bitcoin’s high water consumption is linked to the amount of computing power needed for its operation. According to de Vries’ creative calculations, in 2021, water consumption from mining operations would have reached nearly 1,600 billion liters (or 1,600 gigaliters GL), and it is estimated that this figure could exceed 2,200 GL by 2023.
According to de Vries, mining activity translates into a competition among specialized devices to confirm the next block first, meaning the same transaction would be processed multiple times by various powerful and energy-intensive computers. The reality, as explained in the mining deep dive, is quite different.
The study suggests that a modification to how Bitcoin operates could drastically reduce energy usage and, consequently, water consumption. The author asserts that with the transition to Proof of Stake in September 2022, Ethereum reduced its energy consumption by at least 99.84%. The BBC, reporting on the study’s data, also quotes Professor James Davenport from the University of Bath, who explains the reason quite simply:
“It was only possible because Ethereum’s management is significantly more centralized than that of Bitcoin.”
Environmental and energy improvements in mining
Despite the criticisms raised by De Vries, in recent years, several initiatives have emerged to make mining more sustainable. Among these, the introduction of hydro-cooling farms and the use of exhaust gases stand out. It is also important to emphasize that the water used for industrial ASIC cooling is not destroyed but often recycled. Finally, it should be noted that mining operations often make use of excess electrical energy from hydroelectric plants.
Regarding energy, the situation is also improving. A study from Cornell University found that wind and solar energy projects can benefit from mining during their pre-commercial development phases. The establishment of mining operations could reduce environmental impact and generate revenue to invest in future renewable energy projects.
A paper authored by various industry experts has demonstrated how mining can serve as the ideal activity to stabilize electrical networks and promote the transition to renewable energy sources.
