🧐 If Bitcoin is the first asset in human history that combats inflation + is decentralized + is immutable, then what is the Nasdaq?

I think this is a target that ordinary people should pay attention to! Last night at the 10K Club, I was fortunate to invite @EYTT to share some basic knowledge and system learning about the Nasdaq.

If you still don't know what the Nasdaq is, or even if you don't understand it, you must read this simplified interpretation:

1️⃣ What is the Nasdaq;

2️⃣ If the core logic of investing in Bitcoin is that it is the first decentralized asset to combat inflation, what is the core logic of investing in the Nasdaq?

3️⃣ How to invest in the Nasdaq;

4️⃣ The difference between Nasdaq ETF and S&P 500, and how to choose between the two targets;

5️⃣ What should people in the crypto space allocate as assets?

6️⃣ Other suggestions and risk aspects.

Many people buy the Nasdaq without really knowing what they are buying.

Some see it as a "safer U.S. stock," some see it as a "long-term passive income tool," and some just follow the trend.

But if you don't understand its essence, it's also easy to lose money in the Nasdaq.

1️⃣ What is the Nasdaq?

When people refer to the "Nasdaq," they usually mean the Nasdaq-100 Index.

It is not a company, nor is it a fund, but an index:

Composed of the 100 largest non-financial companies listed on the Nasdaq stock exchange: primarily technology and growth companies (Apple, Microsoft, NVIDIA, etc.)

The index itself cannot be bought; it is just a "statistical report card."

So when people talk about investing in the Nasdaq, they are referring to ETFs that passively track the Nasdaq-100 Index, such as QQQ;

In simple terms:

NDX (Nasdaq-100) is the "algorithm/index of the report card";

QQQ is the "fund/ETF that buys a basket of stocks according to this algorithm."

2️⃣ The core logic of investing in the Nasdaq;

This is a question I asked during Lao Chai's sharing:

The core logic of investing in Bitcoin is clear: the first decentralized asset in human history that combats inflation + is immutable.

So what is the core logic of investing in the Nasdaq?

In summary: betting on human technological progress + the long-term compounding of the strongest capitalist business model.

When you buy the Nasdaq, you are essentially betting on:

Human long-term progress;

Technology as the primary productive force;

Continuous improvement in production efficiency through technology;

Technological revolutions likely occurring in the U.S.;

World-class companies continuously swallowing smaller companies;

Profitability amplifying over time;

And ultimately reflecting in long-term stock prices;

3️⃣ How to invest in the Nasdaq?

Ordinary people do not need, and should not, buy those 100 stocks.

There is only one correct way: buy an ETF that tracks the "Nasdaq-100."

That is, the aforementioned QQQ.

In the A-share market: you can also buy the Nasdaq 100 ETF (but be aware of the premium).

For specific methods, I suggest you check online or ask AI, as there will be very specific steps, and I won't elaborate further.

Here’s an interesting detail from Lao Chai's sharing process: the Nasdaq might be the best product for financial education for children, as it can be bought through WeChat, is relatively easier to operate than crypto assets, and allows them to see the rise and fall of funds, so I recommend that children over 10 years old can give it a try.

4️⃣ What is the difference between Nasdaq ETF and S&P 500?

They may look similar, but essentially:

Same type of asset (U.S. equities)

Different levels of aggressiveness

Simple comparison 👇

S&P 500

More companies (500)

More balanced industries

Relatively smaller fluctuations

≈ "Basic equities"

Nasdaq 100

Fewer companies (100)

Highly concentrated in technology/growth

Greater fluctuations and drawdowns

≈ "Aggressive equities"

You can understand it this way: the Nasdaq is not a "safer S&P," but an "S&P with growth leverage."

5️⃣ For people in the crypto space, how should asset allocation be chosen?

I think the reason for allocating to the Nasdaq is that it allows part of your crypto assets to be converted into other assets, which is an important step that everyone in the crypto space needs to take;

Mainly to balance risk asset allocation:

Digital currency is a relatively high-risk investment, and although the Nasdaq is also an aggressive asset, you are essentially converting part of your assets into shares of a basket of companies with long-term growth, which is a significant improvement for those entirely in the crypto space.

So I suggest everyone can allocate! Not for the sake of returns, but to balance risks while achieving decent returns.

6️⃣ The most important risk reminder (which many people overlook)

Many people only look at the long-term returns of the Nasdaq but overlook this:

Historically, the Nasdaq has experienced maximum drawdowns of over 80% (not in one year, but over several consecutive years).

This means: it is very profitable in the long run, but the process is not always stable and requires strong psychological endurance;

So please remember:

The issue with the Nasdaq is never "whether it makes money,"

But rather "can you stay calm during deep drawdowns."

In conclusion:

Bitcoin: a decentralized asset that combats inflation;

Nasdaq: an aggressive equity betting on technological progress;

S&P: a more balanced basic equity of the entire U.S.

What we need to do is to let each asset play its role.

Thanks again to Lao Chai @EYTT for sharing!

Last night's sharing was quite rich, covering a lot in an hour and a half: I may only grasp the good information I absorbed, but I suggest everyone take a look at this basic interpretation of the Nasdaq, as it may be a very important target for most people, even if you might not have noticed it!

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