A 10% "debt" to equity ratio with "debt" that self-extinguishes in the case of distress is not something anyone should be concerned about.

The debt ceiling really doesn't matter in the case of HBD. It could be set at 1%, and the problem would be the same, if not worse.

Raising it just buys more time, but in the end the problem is the same. It's just about market timing, not the quantity of debt. If speculators were to sell HBD when hive is at the top, HBD to hive conversions would create very small amounts of additional hive. But that never happens sadly.

The timing of changing the debt ceiling is important though. If we decide to raise the debt ceiling now, it would be a great time, as we will just use that to burn more hive. However, deciding to raise the debt ceiling in a bear market will just make the hive printing occur at even lower prices and result in more inflation.

As demotruk pointed out, we need the HBD to hive conversions to occur as soon as possible in a downturn.

but by expanding the supply of HBD more rapidly, while it is a bull market, it forces HBD conversions to happen sooner after the market turns

Saying "over time Hive will go up" so HBD will be beneficial long term completely ignores what happens empirically. Hive will probably see 95% dumps (it needs to go up a lot quickly first).

Anyway, as I said in another comment, I feel better about HBD now that conversions will occur much sooner in downturn.