A recent report by the United Nations has shed light on the alarming costs of cryptocurrency mining in terms of water usage and land utilization. From January 2020 to December 2021, the global water footprint of Bitcoin mining amounted to 1.65 cubic kilometers, which is equivalent to filling over 660,000 Olympic swimming pools.
This water consumption surpasses the combined domestic water use of 300 million people in rural Sub-Saharan Africa. In addition, the land footprint of mining activities during the same period exceeded 1,870 square kilometers, which is 1.4 times the area of Los Angeles.
China and the United States lead the world in electricity consumption, carbon emissions, and water and land use from Bitcoin mining.
The carbon footprint resulting from Bitcoin mining from 2020 to 2021 was equivalent to the emissions released by burning 84 billion pounds of coal, operating 190 natural gas-fired power plants, or disposing of over 25 million tons of waste in landfills. China and the United States emerged as the largest contributors to this environmental impact, exceeding resource consumption by any other nation by at least 50 percent.
Much of this cost comes down to how electricity is produced. During this 2020 to 2021 period, hydroelectric power supported 16 percent of the world's Bitcoin mining. Even though hydroelectric power is considered a renewable resource, it requires flooding large swaths of land to build reservoirs for hydroelectric dams.
Beyond this land requirement, hydroelectric power production also loses lots of water through evaporation. It's been previously reported that the carbon footprint of Bitcoin mining rivals beef production and precious metal mining. The new report shows that 'the environmental footprint of BTC mining is not limited to greenhouse gas emissions.'
My take on this is that Bitcoin indeed produce a big carbon footprint, and it uses a lot of renewable energy. But does its benefits outweigh the costs and concequences?
The impact of Bitcoin on the environment is a subject of concern and ongoing debate. Bitcoin mining requires a substantial amount of energy, which can contribute to carbon emissions and environmental degradation, particularly if the energy used comes from non-renewable sources. Additionally, the increasing demand for mining can lead to the exploitation of natural resources, such as land and water. However, some argue that the energy used for Bitcoin mining can be sourced from renewable and sustainable methods, mitigating its environmental impact. It is crucial for the industry to prioritize the adoption of cleaner energy sources and sustainable mining practices to minimize the potential negative effects on the environment.
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