When people are renting and don't own their own home, the incentive to actually improve the property isn't there, so an extra expensive space heater that can be moved to the next place has more value than improved insulation.
That's true but a 1000W heat pump can get you 3000W of heating. I.e. if you use a given amount of energy to transfer heat from the outside, you effectively get more than 100% (most heat pumps are at 300% efficiency).
Efficiency can't be higher then 100%, if it could be then you've got a perpetual motion device or in other words, you're creating new energy that didn't exist in the universe before - breaking physics.
Not to mention that heat pump efficiency isn't linear as it depends on the humidity and temperature in which it's operating.
Electric heaters more or less just lose energy in light that they produce, which is quite often negligible.
>Efficiency can't be higher then 100%, if it could be then you've got a perpetual motion device or in other words, you're creating new energy that didn't exist in the universe before - breaking physics.
Only in a closed system, heat pumps are not a closed system, they take advantage of ambient heat in the environment which brings efficiency above unity if measured as power input vs heat output.
All in all agree than BTC will adjust is difficulty with long term economics, and so, it will not be quick, short-term actors will lose money.