What does borrowing bits from a Class C network impact?

When you borrow bits from a Class C network, the primary impact is on the host capacity. Class C networks are defined by their standard subnet mask, which typically allows for a maximum of 254 usable host addresses. Each bit borrowed from the host portion of the address effectively reduces the number of usable host addresses, because you are using some of those bits to create additional network addresses.

In networking, the number of bits you have available in the host portion of the address determines how many devices you can assign unique IP addresses within that network. Therefore, when bits are borrowed from the host portion, the number of devices that can communicate within the same network segment is decreased.

The network capacity remains unchanged because you are still using the same overall Class C address space, just reallocating some of it to define more sub-networks at the expense of individual host addresses. This enables better management of IP space, especially in situations where larger networks need to efficiently accommodate multiple smaller sub-networks.