Bitcoin's difficulty adjustment algorithm means that the more electricity you throw at it, the more it absorbs. Bitcoin is like a black hole for electricity.
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It will essentially be converting the total amount of fees into paying for that much electricity to fund mining. If blocks don't get bigger, growth in mining has to come from fees going up. There's a limit to what people will pay before using something else though.
If people come up with significantly more efficient ways to mine Bitcoin, it drives out the least efficient miners.
It's still the same amount of money being converted into mining. If it's very competitive, a higher % goes to buying electricity rather than profits.
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It's not going to be profitable to pay for electricity rather than generating it yourself if doing that becomes increasingly common. It has strong pressure to vertical integration with the most cost-efficient way of getting electricity, whether that's renewable / dirty or not.
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