This is exactly the problem faced by BTC. It is impossible to use all resources for BTC mining. Normal humans and governments will not want to use more than 50% of resources on this just to improve security. Then the BTC chain cannot support the doubling of BTC's market value brought by halving. If the market value of BTC does not double, the profit will not return to the pre-halving after halving, which in turn will make the computing resources deployed on the chain less, and the death spiral will return to zero. This is why BTC is a tulip bubble with a life cycle of 30-50 years.
So some people who can't even understand the white paper say that BTC is not a tulip bubble. They are just college wastes who are too stupid to be reborn.
