Is Bitcoin's growth sustainable? The mounting ecological impact of mining
Environmental pressures increase as crypto consumes vast amounts of energy and water
Bitcoin, the world's most popular cryptocurrency, has revolutionized fintech since its 2009 launch. But as it reshapes the financial landscape, concerns about Bitcoin's growing environmental footprint—especially from mining—are raising red flags.
The main concern lies in Bitcoin mining—the process by which new Bitcoins are created. Powerful computers, known as miners, compete to solve complex math problems, with the first to succeed earning Bitcoin as a reward.
Electricity consumption and carbon emissions are growing concerns when it comes to Bitcoin and crypto mining in general. In fact, according to the International Monetary Fund (IMF), data and crypto mining centers are responsible for 2% of the whole world's electricity consumption and almost 1% of total emissions—reflecting a significant cause for concern.
The IMF also noted that the electricity consumed in a single Bitcoin transaction is roughly the same as three years’ worth of energy consumed by an average person in Pakistan or Ghana.
However, the environmental effects of mining go beyond this. A study from earlier this year found that Bitcoin's water footprint is quite significant, reaching an annual rate of 2,237 gallons in 2023.
In a separate 2024 study on Bitcoin water consumption, it was found that Bitcoin miners take up water equivalent to what 300,000 households in the US roughly consume on an annual basis. As the world is faced with a climate crisis, this whopping scale of water consumption further strains the precious resource.
In an interview with environmental nonprofit Greenpeace USA, researcher Alex de Vries—who was behind the water consumption study—explained that “a lot of water is consumed to satisfy the power demand of miners”.
The researcher further noted that “mining devices are operating 24/7 and generating a lot of heat in the process, so cooling systems are also required to keep the devices at optimal temperatures”.
Though Bitcoin continues to gain traction, all of these findings reflect a reality that is critically concerning. While there have been emerging insights that the cryptocurrency could already be going green, the environmental challenges surrounding Bitcoin mining still remain significant and persistent.
