Bitcoin‘s mining process has been criticized for its environmental impact due to its energy-intensive nature for a long time. Since its introduction in 2008, Bitcoin has never been hacked. The strict security measures provided by the Proof of Work (PoW) consensus mechanism continue to add value to the cryptocurrency. However, the PoW mechanism is built on complex cryptographic algorithms that are energy-intensive and require significant computing power.
According to research by Cambridge University, Bitcoin’s global popularity has caused the network’s energy consumption to approach the annual average energy consumption of countries like Poland, Ukraine, and Malaysia. As of December 7, it was measured at 147.61 terawatt-hours.
Although Bitcoin’s PoW consensus mechanism has become an immutable security guarantee, some still see it as an environmental nightmare. The Bitcoin mining industry is turning to renewable energy sources to alleviate these concerns, and new studies point to another ecological problem, such as the high water consumption of crypto mining.
A new study titled “Bitcoin’s Growing Water Footprint” by Alex de Vries, a data analyst and researcher at Vrije Universiteit Amsterdam and De Nederlandsche Bank, highlights the potential environmental damage caused by Bitcoin’s water consumption.
The Bitcoin mining industry continues to grow every year, reaching all-time high hash rates. As the price of Bitcoin increases, this trend is expected to continue.