There are very few algae strains that are actually harmful to orchid roots.
*In the water, there are certain strains of phytoplankton responsible for massive marine and freshwater die-off (look for "red tide"). But the dynamics are different on land and air.
Algae killers, fungicides and bactericides applied to the orchids to remove the algae can actually do more harm to the plants than the algae itself.
Most of them are designed to destroy plant cells (last time I checked, orchid plants are made up of plants cells too).
Most algae actually form a symbiotic relationship with the orchids.
1. Orchid roots provide a habitat for the algae.
2. Algae expel excess nutrients from their photosynthetic processes and are absorbed by the orchid roots.
One does not require the other in order to live. However, when paired properly they result in a combination better than the sum of its parts.
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a vendor, said that algae may keep the roots from absorbing water
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Unless that algae strain somehow hardens into an airtight layer over the roots, this is very unlikely.
In fact, having a layer of moist, nutrient-rich algae on the aerial roots are actually a boon to orchids.
Excess algae growth on the roots may be an indication of improper growing conditions (too wet and not enough air flow).
It is not the algae that killed the roots, the stagnant conditions did. And the algae just happen to thrive there afterwards.
Remember: overwatering plants can also lead to dehydration.
Just like gbrice said, when exposed to proper growing conditions, the excess algae will be unable to sustain itself and die back to a level that balances with the growing conditions.
Not many people do. Unfortunately, if the growing conditions are conducive to algae growth, the grower does not have much choice in the matter. The algae WILL come and set up shop.
If you do not like the algae, you must address the problem (overall growing conditions) and not just the symptom (excess algae growth).
John