Because it’s an amazing solvent; a liquid that a HUGE range of stuff can dissolve in. Solids don’t do chemical reactions well, because the molecules are all locked into rigid structures so things can’t get at each other.
“Life” is an absolute shitload of chemical reactions, so it needs to be in the liquid phase to be possible. Solids wouldn’t react easily enough, gases would fly apart. And water is a liquid in the right temp and pressure ranges, and is able to dissolve a giant range of different substances, including all the things that need to react with each other for life to happen. Very very few other liquids can dissolve so many things, and those that can aren’t easily found in large quantities all over the place like water is.
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