[cesarb]

> When energy becomes cheaper, miners can do more mining, leading to an increase in blocks.

When there's an increase in blocks, Bitcoin increases the amount of mining required for a block, to prevent an increase in the supply of blocks.

[BearGoesChirp]

And economics can easily account for that. Instead of saying the cost needed to product some number of blocks changes over time by 0, you instead say it changes over time by f(t). You then subtract f(t) (or add, depending upon how you treat the sign) from any actual decrease in cost to mine, and then apply the same logic.

Say the cost to mine falls by x (cheaper energy or some others amount), and x < f(t). x - f(t) < 0. The decrease in cost is less than 0, meaning the cost effectively increased since it didn't decrease by the amount needed due to the built in difficulty increase.

Normal economics works this same way due to scarcity, though the default change in cost into the future is far less sure of a thing. Take mining gold. Given that gold is mined from the cheapest to mine spots first, the more gold you mined, the more the cost of mining the same amount of gold. Maybe a new mine filled with easier to mine gold is found, maybe a current mine runs out of gold much sooner than expected, but it works in a similar manner.