The backdrop for institutions to adopt Bitcoin has never been better

Bitcoin has long been a niche asset only adopted by those on the fringes of society.

Rew Kang, the founder of DeFi-focused crypto fund Mechanism Capital, recently broke down why the "Backdrop for institutional adoption of Bitcoin" is stronger than ever before.

Rew Kang October 9, 2020.The institutional backdrop for Bitcoin has never been any better.

Yields are low, meaning the opportunity cost of owning Bitcoin goes down.

It's no surprise that with this backdrop, institutions and corporations are embracing Bitcoin where possible.

On Thursday, $80 billion financial technology company Square revealed that it had deployed $50 million worth of cash from its balance sheet to purchase Bitcoin for investment purposes.

Jack Dorsey, who heads both Square and Twitter, has long been a fan of Bitcoin, calling it the internet's native currency.

MicroStrategy, an American business services company, has purchased $425 million worth of BTC for its balance sheet over the past two months.

Most notably, billionaire hedge fund manager Paul Tudor Jones announced earlier this year that he would be investing 1-2 percent of his fund's capital in Bitcoin futures.

Echoing the points Kang brought up, Jones said that he was purchasing BTC because he sees immense value in the cryptocurrency during the ongoing macroeconomic turmoil where inflationary trends could take place.