The global operations of Bitcoin mining consume annually more water than the city of New York, according to the Wall Street Journal. Estimated water consumption by Bitcoin mining workers is expected to exceed 591 billion gallons this year,
significantly surpassing the 403 billion gallons projected for New York City’s use in 2022 by the U.S. Geological Survey.
The primary use of water in Bitcoin mining stems from the cooling needs of computer servers, either directly or indirectly through air conditioning systems in gas and coal-powered energy stations. This extensive resource utilization in Bitcoin extends beyond electricity to a substantial water footprint.
The intensive resource consumption in Bitcoin extends beyond electricity to a significant water demand. Digital currency operations require large data centers that increasingly rely on both electricity and water. This has sparked heated debates, raising concerns about the sustainability of Bitcoin mining among critics, including environmental organizations, prompting a critical examination despite its purported benefits.
Is Bitcoin Mining a Flawed Methodology?
Critics like Stephen Diehl question the accuracy of the aforementioned claims. Diehl argues that the methodology used to estimate Bitcoin’s water usage was flawed, emphasizing the need for a more precise understanding of resource consumption within renewable resource contexts such as water.
He points out that indirectly measuring water usage through electricity consumption doesn’t accurately represent Bitcoin’s actual water footprint.
Additionally, Diehl criticizes the method of correlating unrelated variables to draw exaggerated conclusions.
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