The Bitrate is a different version of the bit crusher effect, with control for lowering the sampling rate rather than bit depth.

When the sample rate is reduced, the high frequency audio data is affected, producing aliasing effects and ringing like you might hear on a Speak and Spell or Skype call. Further reduction of the sample rate incurs sub frequency bell tones and strange distortions.

Like many of the effects, it's based upon elements of textbook circuits. In this case, a JFET based analogue to digital converter, this samples and holds the input signal at high speed in preparation for it to be read as digital data. This is where the 'digital' sound effect you hear is generated. The audio signal is amplified from here instead of being digitised, for the downsampled effect with some warmth.
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