Some time ago, I was having a discussion about the richest billionaires, Elon Musk and Jeff Bezos, after learning that the former now has a net worth of $302 billion dollars, making him the world's richest person. The article reported it as $300 billion in the headline before specifying $302 billion in the article itself. It struck me that that was $2 billion worth of rounding. At my current rate of pay, it would literally (I've done the math) take me over a million years of working just to earn a rounding error in Elon Musk's fortune, and that's without eating!
Anyway, it can't be said that I have the highest opinion of either of them, but our convo was about comparing like how Musk and Bezos made their respective fortunes because like when it comes to Bezos, I can understand where some of his fortune comes from in the sense that I buy stuff off Amazon sometimes and read the occasional Washington Post article. To me, Bezos seems like he was once a human being, then got rich off a couple clever ideas, then decided to lock in control of all clever ideas by gobbling up as many companies as possible (especially potential competitors), and now pays the Washington Post to editorialize against the Build Back Better Act because it would require him to actually pay taxes for a change. Elon Musk though to me is like a space alien. It's like he's a being from a different planet. His money comes from like selling cars I can't afford, sending millionaires to vacation in low-Earth orbit at the expense of the nation's real space program (I have the feeling we could've landed someone on Mars by now if not for the diversion of NASA resources to the private sector since the Great Recession, seriously), and investing in various cryptocurrencies, stuff like this, none of which touches my world. There's nothing he sells that I can afford, nothing he does that affects me in any way. He sells goods and services to rich people and manipulates money and that's about it, it seems. He talks like he's from another planet too. Named his kid after like a calculus formula because he's better than you and knows what the hell it means. Was he ever human? I can't tell. So this all led to me voicing confusion about what the hell cryptocurrency even is.
So more recently, I was looking to get clarity on bitcoin specifically because I saw a sign at the gas station near where I work saying that they now do something in bitcoin or have a bitcoin option or something or other like that and I was still totally confused about what that even meant. I was talking to a younger co-worker of mine about bitcoin because it's in the news a lot too and I really don't get it and she's young so I figured maybe she would. She explained it to me reasonably well, I think. (She's a very descriptive person who goes into detail and words things plainly so that even I can kinda sorta understand.) Apparently, she got invited to one of those gimmick parties like a couple years ago where they throw a party in exchange for you attending a meeting where they try to sell you something and the something in this case was a cryptocurrency called...I think it was "forester" or something like that, she said. Anyway, her explanation gave me some concept of how cryptos work. If I'm understanding correctly though, what she described to me didn't make it sound like currency even, but more like it's a kind of stock.
Apparently, cryptocurrency works like...you join a cryptocurrency social media circle, pay $25 or $300 or whatever to join, and in exchange you get the corresponding amount of whatever crypto they're doing. Let's say it's bitcoin, the most popular one. You then learn investment strategies surrounding bitcoin (or whatever) from that group and share your own insights, with the idea being to sell your bitcoin or whatever at a profit later on, i.e. in exchange for real money that has a physical form.
I have two questions:
1) Am I understanding this right? And...
2) Why? Like why does cryptocurrency exist? I mean it doesn't even seem to have comparable redeeming social value that regular stocks might on some superficial level. Like if you invest in a grocery store or buy stock in an electronics store or something, there's a corresponding institution that provides actual goods and services in the actual world. Bitcoin does none of that. There's no product or service corresponding to buying bitcoin. It seems like it's just a way millionaires and con artists have devised to make more money by manipulating money rather by contributing something to society even indirectly.
Am I getting something wrong here?