The reason is that hot water dissolves contaminants more quickly than cold water, and many pipes in homes contain lead that can leach into water. And lead can damage the brain and nervous system, especially in young children.
- The EPA in the NY Times
Water heaters can have a big impact on water quality. That is one reason why you should not drink hot tap water. As water heaters age, the components in the water heater tank and the tank itself breaks down. You may find white flakes in your faucet screens. These are usually present when the dip tube (a plastic pipe in your water heater) starts to flake apart. You may see a clear or green gel like substance if you draw a bath of hot water. This is caused from the anode rod, found in all water heaters, breaking down. And your hot water may smell odd. This too is caused by the chemical reaction between the anode rod and the water or by bacteria in the water heater. If any of these conditions are of concern, call a plumber to investigate the problem.
- An American Water Authority
It is best to use cold water. Hot water is more likely to contain dissolved contaminants from your household plumbing system. These contaiminants may include rust, copper and lead.
- An American City Council
So the dangers are: metals and metal salts dissolving in the water, breakdown of the dip tube and potentially bacteria proliferating in the warmth.
If you see green scum or white flakes in your water, you're not going to brew with it. Considering I've known people who have drunk water from their green, coroded taps their whole lives where the water comes out brown from the water tank or dam or whatever, I think the safety risk is overstated. I'm sure it's there, but it's never bothered them and it's never bothered me.
As far as bacteria goes, i don't think nasties from the bottom of the ocean will be travelling to my place any time soon. Also, it's not just the 100 degree temperature that kills bugs, but the effect of boiling, it's a violent affair that they just can't handle. Besides, if any bugs somehow managed to survive the boil, you'd know it in your fermentation (as did the commercial brewery). Further to that, if my HWS was a cesspool of bacteria, then it would be an ideal place for them to multiply, and they wouldn't stop until they'd taken over the world. So I'm sure there's SOME bacteria in there but I doubt they like it.
My 2,836,183,438,867 Argentinian peso's worth (two cents) - Pour a cup of hot and a cup of cold water, drink them and if you notice a difference you're not comfortable with, don't brew with it. I still will be, after all the instructions on those Coopers cans says "add hot tap water"!!!