every HBD created is "no extra demand purchase".
And you get an exponential MC curve with falling prices in Hive.
Convert HBD to Hive on falling price = increase MC of Hive = allow more HBD to be in existence.
So if hive hits a lower price, it's like a short option, because you don't need to buy, you simply can create it.
Doesn't matter how deep the market is.
And the best, no extra demand. This transaction creates more hive and doesn't remove hive from the market in terms of a buyer purchase.
IMO a timebomb. I remember the 20% + Inflation times on steem because of SBD.
Same on larger scale we will see in bear too here IMO.