Assessing the Environmental Footprint of Bitcoin: A Comprehensive Analysis of Water, Land, and Carbon Impacts

Bitcoin, the pioneering decentralized currency, has transformed global finance. However, its expanding network drives greenhouse gas emissions, water use, and land consumption, posing sustainability challenges. This study introduces a novel methodological framework to assess these impacts across participating nations, integrating the ReCiPE 2016 midpoint (H) method for life cycle impact assessment of offsite environmental footprints and mathematical modeling for onsite environmental footprints, using open LCA and the Ecoinvent v3.10 database in a cradle-to-gate approach. The findings reveal that the United States, China, and Kazakhstan, responsible for 65% of global Bitcoin mining, are the largest contributors to its environmental impact. The United States records a water footprint of 419 million cubic meters under high computational load, enough to meet the annual water needs of Antigua and Barbuda, Barbados, and Bhutan. China leads with a 900 km² land footprint, while Kazakhstan emits over 25 MtCO₂e greenhouse gas emissions, driven by coal reliance. These findings offer policymakers region-specific insights to balance Bitcoin’s economic benefits with its environmental costs, emphasizing the need for technological advancements and sustainable energy shifts. The study also calls for future research into pinpointing the Bitcoin miners’ locations and the true computational mix of the global Bitcoin network.