None of what you said is special about mining. If a factory increases efficiency by 10% it will simply produce more of whatever it makes as long as there's dem

None of what you said is special about mining. If a factory increases efficiency by 10% it will simply produce more of whatever it makes as long as there's demand for it. And then other factories have to up their game. Also the higher the price of the product the factory produces, the more it is worth spending extra resources producing it. And of course this isn't limited to factories, it's true for businesses in general. What is special about mining is that energy is just about the only resource it uses, so it's more obvious, while a factory might be bottle-necked by other resources like floor space and a software company might be bottle-necked by how many programmers it can hire/manage. Miners are similarly limited by how much mining hardware they have or are capable of managing.