Sure that happens, and in that case the maximum added inflation is 10%.

This is wrong.

But in practice it is much less than that

This is very wrong.

I was writing a comment explaining the whole step by step process, then noticed I was writing a book and had a lot more things to say than anticipated.

I will organize my thoughts and write a post tomorrow, as I think I fully understood how HBD can cause inifinite inflation while writing that comment.

This discussion was very productive, and honestly thinking about HBD and its conversions never stops to hurt my brain. I am sure you know that feeling too.

The conclusion is inflation caused by HBD can be infinite and depends on market timing. In practice it is higher than 10% even though not all HBD get converted.

Will make a big post tomorrow.