This is not a correct analysis. Firstly, Bitcoin is far more price sensitive to electricity than almost any other industry. Remaining profitable requires very low electricity costs, and are usually not competing in the same price bracket as other uses of electricity. Bitcoin mining is most prevalent in places where the energy is already wasted (thus very low price at market). Because Bitcoin miners can act as a buyer of last resort, it actually incentivizes energy development, not only for Bitcoin, but for every use.

Also, Bitcoin miners aren't destined to grow infinitely, consuming all spare electricity. There will be an equilibrium point where Bitcoin mining computers can only get so efficient and so fast.