In most electrical systems, the power source provides a constant voltage and the devices take as much power as they need. Splitting the circuit with extension cables doesn’t change the voltage, so the devices still take all the power they need.
The only downside is that splitting the circuit lets you add more devices. Possibly they add up to more power than the source can provide, and typically a circuit breaker pops or a fuse blows.
Conceivably, all those devices can add up to more power than the thin extension cord can conduct, so you wind up heating up the extension cord (possibly dangerously so) before the breaker pops.
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