Step 1: Understand the process.
When water falls from a height, its potential energy is converted into kinetic energy. Upon hitting the bottom, this kinetic energy is converted into heat energy due to friction and other factors. This heat raises the temperature of the water at the bottom of the waterfall.
Step 2: Conclusion.
Thus, the temperature at the bottom is higher due to the conversion of kinetic energy into heat.
Final Answer: The kinetic energy of the falling water is converted into heat.