If the hash rate doesn't increase but the price does, Bitcoin may become harmful to grids and compete with other electricity buyers.
The only sustainable way forward is to increase the hash rate, decrease the margin of miners, and let them compete like dogs.
Your scenario is only possible if governments somehow artificially suppress hash rate via regulations in a coordinated fashion globally.
If price goes up, hash rate goes up until equilibrium is met. The higher the price goes, the more profitable older machines become.
How does one increase elecricity consumption without increasing hashrate?
