Portfolio rebalancing through DeFi must be simplified to see adoption

Central banks and key leaders are increasingly raising further alarms for rising inflation, causing spirals of doubt across the world. Just recently, United States Treasury Secretary Janet Yellen called for Congress to either raise or suspend the U.S. debt ceiling, stating that the government will run out of money to pay its bills by October.

What seems to sound more like a horror film of the future is merely the front news of global financial publications at the moment. Yellen stated that the overwhelming consensus among economists and Treasury officials of both parties is that failing to raise the debt limit would produce widespread economic catastrophe, “potentially precipitating historical financial crises, stock sell-off and recession, creating severe market volatility.”

The value of the U.S. dollar will continue to decrease in the future, and individuals need, more than ever, simple, rather than complex, tools to protect themselves from financial risk and diversify their portfolios.

Risk events have also become more common in global finance, with margin calls and liquidation issues now impacting both traditional finance and decentralized finance (DeFi) as they become increasingly interconnected. The ongoing Evergrande real estate crisis is further evidence that poor-decision making from a wide variety of markets will impact markets we thought weren’t connected, like crypto.

General confidence in global finance has declined, and understanding of how money works has worsened over time. Historically, poor moves by policy-makers have left more than 31% of the world’s adult population unbanked.

However, more countries are beginning to explore different currencies as decentralized finance becomes more widely adopted. Crypto, which is inherently complex, is finally moving into the next iteration, seeing the rise of tool and infrastructure development that is helping newcomers navigate the risks and uncertainties of the burgeoning but nascent movement of finance. It is up to leaders in this space to help newcomers reduce their portfolio risks.

Source:cointelegraph.com