Not really hurting, but maybe hampering your abilities a bit. My position I play mostly, and where I'm at the most comfortable is when I'm sitting. This is the most natural, and I tend to play my best in this position.
When standing I generally keep the bass at my belt line, a little higher if I'm playing more technical stuff.
In another situation, I'm playing in a tribute band, emulating the bassist and attitude, which means slung low with an aggressive punk stance..
Playing it that low does not hurt my ability, but mechanically I can't play as technical or fast with my fretting hand, but it's not needed for the music being played. I will play about 80% with a pick for that, where my natural or preferred method is finger style.
So yes, you will hamper your abilities to play technical with the same fluidity, but it won't harm anything. If you are only pedaling basic notes, throw her low and give it some attitude.