If I understand the equations correctly, the high interest rate is the thing that creates more debt. The Ausbit page says that the current HBD market cap is $9,078,966. I've read other pages saying the witnesses want 5 million in HBD savings.

The 20% interest on 5 million HBD will create 1 million of debt in the first year.

As I understand, the debt limit simply lowers the price when the HBD haircut kicks in. The ausbit page says it currently kicks in at $0.2234 . HIVE is at $.85 right now.

It is conceivable that HIVE could dip to $0.22. It was there last year.

Tripling the debt limit should divide the haircut price by three; so the haircut would kick in at $0.75.

It is likely that HBD holders will convert their HBD to HIVE if there is a huge price drop. So, I don't think the debt limit will come into play for the next couple of years.

Anyway, the damage is being done by the high interest rate, not by the debt limit.

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