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The recent surge in the value of bitcoin, which exceeded $38,000, has not only brought profits to investors, but also heightened concerns about the environmental impact of the cryptocurrency. A study published in Cell Reports Sustainability draws attention to 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 contributed to a staggering global total of more than 1,600 gigalitres in 2021. The environmental ramifications are particularly worrying in regions where water is scarce, such as Central Asia and United States.
Alex de Vries, a researcher who studies the cryptocurrency footprint, predicts a more than 40% increase in water consumption if the trend continues, due to the high-speed proof-of-work (PoW) mechanism. energy consumption that underpins bitcoin mining. This process requires considerable computing power, which requires significant cooling systems for data centers and power plants.
The use of renewable energy sources, often presented as a solution, is criticized by Mr. de Vries, who believes that they are not enough to compensate for the impact on the environment due to their limited availability. He considers the proof of stake (PoS) model, adopted by Ethereum in 2022, to be a more sustainable alternative. PoS reduces the need for power-intensive hardware by allowing cryptocurrencies held to increase the probability of transaction validation, a development that has not diminished the popularity or functionality of Ethereum.
As the crypto community looks to the future, particularly towards 2040 when Bitcoin mining is expected to end with the mining of the last coin, de Vries warns that miners must pivot away from unsustainable practices. If they do not adapt their technology, they risk being caught in a losing game against environmental sustainability, a scenario that could have serious repercussions on the long-term viability of the sector.
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