It turns out plants need oxygen too!
… of which there is quite a lot dissolved into most water – which is why you can root cuttings in water alone.
So why does over watering cause problems in potted plants with soil?
If there is standing water in those conditions, bacteria and other microorganisms will consume all the oxygen in the standing water, in the process of breaking down organic matter in the soil – and as a result, the roots of the plant will suffocate and rot.
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